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Group Formation and Governance

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  • LUDOVIC RENOU

Abstract

This paper studies the impact of the governance of a group, whether be it unanimity, simple majority or qualified majority, on its size, composition, and inclination to change the status quo. Somewhat surprisingly, we show that not only unanimity might favor the formation of larger groups than majority, but also a change of status quo. This paper therefore suggests that unanimity, often blamed for the European inertia of the last two decades, was only a scapegoat.

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 13 (2011)
Issue (Month): 4 (08)
Pages: 595-630

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Handle: RePEc:bla:jpbect:v:13:y:2011:i:4:p:595-630

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References

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  1. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
  2. Salvador Barberà & Matthew O. Jackson, 2000. "Choosing How to Choose: Self-Stable Majority Rules and Constitutions," Working Papers 57, Barcelona Graduate School of Economics.
  3. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
  4. Hideo Konishi & Debraj Ray, 2000. "Coalition Formation as a Dynamic Process," Boston College Working Papers in Economics 478, Boston College Department of Economics, revised 15 Apr 2002.
  5. Martin J. Osborne & Rabee Tourky, 2008. "Party Formation in Single-Issue Politics," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 974-1005, 09.
  6. Volker Nocke, 1999. "Cartel stability under capacity constraints: the traditional view restored," LSE Research Online Documents on Economics 6751, London School of Economics and Political Science, LSE Library.
  7. Leech, D., 2000. "Members' Voting Power in the Governance of the International Monetary Fund," The Warwick Economics Research Paper Series (TWERPS) 583, University of Warwick, Department of Economics.
  8. Marion Kohler, 1999. "Coalition formation in international monetary policy games," Bank of England working papers 92, Bank of England.
  9. Giovanni Maggi & Massimo Morelli, 2003. "Self Enforcing Voting in International Organizations," NBER Working Papers 10102, National Bureau of Economic Research, Inc.
  10. Garance Genicot & Debraj Ray, 2003. "Group Formation in Risk--Sharing Arrangements," Review of Economic Studies, Wiley Blackwell, vol. 70(1), pages 87-113, January.
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Cited by:
  1. De Fraja, Gianni & Sákovics, József, 2012. "Exclusive nightclubs and lonely hearts columns: Non-monotone participation in optional intermediation," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 618-632.

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