Following an election, Heads of State typically choose a formateur to report back a prospective government by some deadline. If this formateur fails then another party leader is chosen on the same terms. We model this mechanism as a bargaining game, in which a single party leader has exclusive access to the Head of State, but does not have a monopoly on making proposals. We characterize the unique equilibrium of the game in which all parties are symmetric and parties split a fixed-size pie. We also show that supra-minimal governments may form when parties are asymmetrically sized: a result consistent with the evidence on government formation in countries which use a formateur mechanism.
- Government formation
- Sequential bargaining