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ECONOMY

Weingast - Wittman (eds) - Handbook of Political Ecnomy

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keith krehbiel 227<br />

Outcomes<br />

p<br />

I II III<br />

IV<br />

V<br />

v<br />

m<br />

No policy change<br />

f<br />

Gridlock Interval<br />

f<br />

m<br />

v<br />

p<br />

Status quo q<br />

Fig. 12.2 Equilibrium in the pivotal politics theory<br />

It is merely an analytic convenience that the proposer is the median voter. Any<br />

right-of-median voter would make the same proposal because he or she faces the<br />

same optimization problem: to make the filibuster pivot indifferent between the<br />

optimal proposal p ∗ and the status quo q. Any proposal less than 45 is not optimal<br />

for such proposers because it fails to extract all available rents. Any proposal more<br />

than 45 is not optimal for such proposers because it triggers a successful filibuster<br />

and leaves the undesirable status quo point in effect. Only with x =45isthereno<br />

alternative proposal that can both beat a filibuster and gain a majority. Therefore, the<br />

equilibrium proposal in such cases is, in general, 2 f − q.<br />

From the opposite end of the spectrum—that is, a status quo point that lies on the<br />

upper end of the spectrum—the president and the veto pivot (the 66th legislator in<br />

this scenario) are the constraints against which bill proponents optimize. Dispensing<br />

with an example, suffice it to say the equilibrium proposal is 2v − q. 6<br />

With only a couple of qualifications, these two examples of pivotal voters serve<br />

effectively as building blocks for the complete statement of equilibrium in the pivotal<br />

politics game. Figure 12.2 graphs all possible equilibrium outcomes (vertical axis) as<br />

a function of variable status quo points and fixed ideal points (horizontal axis). As<br />

many as five types of behavior occur in the model, defined in terms of the extremity<br />

of the status quo relative to pivotal legislators’ ideal points. For status quo points<br />

in the most extreme intervals, I and V, the super-majoritarian constraint does not<br />

bind proposal-making, and the median voter outcome results. Therefore, the graph is<br />

⁶ This example assumes that the president’s ideal point p is greater than 66. Substitute p for v<br />

otherwise. Formally, the game is multistage, finite, and complete information in structure. As an analytic<br />

convenience, it suffices to focus on the behavior of at most four players: the median voter, a president, a<br />

2/3 veto pivotal voter on the president’s side of the median, and a 3/5 filibuster pivot on the side of the<br />

median opposite the president (see Krehbiel 1996)

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