Legislative hostage-taking
Legislative hostage-taking—whereby the minority party refuses to pass a bipartisan policy unless another divisive or contentious policy also passes—has become a frequent occurrence, especially in American politics. We develop a dynamic model of legislative bargaining and electoral politics to provide insights into why hostage-taking occurs, which policies are held hostage, and which policies are demanded as ransom. Our key insight is that (credible) hostage-taking can only occur if the divisive policy benefits the voter. Furthermore, when hostage-taking occurs, it benefits the voter. However, these benefits are potentially tempered if parties can engage in policy design. In particular, hostage-taking can generate a perverse incentive for the majority party to engage in money burning to shield themselves from the minority party’s hostage-taking.
Authors
- Barton E. Lee (ORCID: https://orcid.org/0000-0002-0109-7356)
- Giovanni Andreottola
Institutions
- Bank of America (US)
- Johannes Kepler University of Linz (AT)
- ETH Zurich (CH)
Publication Details
- Journal
- European Economic Review
- Published
- 2025-10-17
- DOI
- https://doi.org/10.1016/j.euroecorev.2025.105183
- Primary Topic
- Political Influence and Corporate Strategies
- Type
- article
- Field-Weighted Citation Impact
- 0.00