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This study analyzes the efficiency of equilibria in a multilateral bargaining game in which a legislature divides its budget among collective and particularistic goods. In order to disentangle the causes of inefficiency, we extend the model of Volden and Wiseman (Am Polit Sci Rev 101:79–92, <CitationRef...</citationref>
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This paper analyzes the investment decisions of the members of a committee when a subsequent bargaining process determines the distribution of a divisible good among them. The shares allocated to investing agents generate positive consumption externalities. We show that agents’ investments...
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