Communication in Legislative Bargaining

Abstract

We report the results of an experimental investigation of the Baron and Ferejohn (1989) model of legislative bargaining with cheap talk. Communication results in substantially increased proposer power, close to the stationary subgame perfect equilibrium prediction. This is achieved primarily through voter initiated bargaining to be included the winning coalition, while arguing for a zero allocation for redundant coalition members. Voters consistently follow through on their stated reservation shares, with proposers not partnering with voters who state excessively low reservation shares. Blocking coalitions between voters are rarely successful.