Power brokers: Middlemen in legislative bargaining

Matias Iaryczower, Santiago Oliveros

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


We study a model of decentralized legislative bargaining over public decisions with transfers. We establish the emergence of middlemen in legislative bargaining as a robust equilibrium phenomenon. We show that legislative intermediation can impact policy outcomes, and can be inefficient. To fulfill this role, the middleman's policy preferences and bargaining position must be such that its role of intermediary is credible. But the political middleman must also directly benefit from policy change. The results highlight fundamental differences between the role of intermediaries in politics and exchange economies.

Original languageEnglish (US)
Pages (from-to)209-236
Number of pages28
JournalJournal of Economic Theory
StatePublished - Mar 1 2016

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


  • Bargaining
  • Intermediaries
  • Legislatures
  • Middlemen
  • Vote buying


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