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A simple mechanism for resolving conflict

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  • Hortala-Vallve, Rafael
  • Llorente-Saguer, Aniol

Abstract

In Conflict Resolution situations where two parties with opposed preferences need to make a number of decisions simultaneously, we propose a simple mechanism that endows agents with a certain number of votes that can be distributed freely across issues. This mechanism allows parties to trade off their voting power across issues and extract gains from differences in the intensities of their preferences. The appealing properties of such a mechanism may be negated by strategic interactions among individuals. We test its properties using controlled laboratory experiments. We observe that equilibrium play increases over time and truthful/honest play decreases over time. The subjects almost reach the welfare predicted by the theory even when their behaviour is far from equilibrium. The fact that deviations from equilibrium do not do much damage to its welfare properties is a further argument in favour of the use of this mechanism in the real world.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 70 (2010)
Issue (Month): 2 (November)
Pages: 375-391

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Handle: RePEc:eee:gamebe:v:70:y:2010:i:2:p:375-391

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Web page: http://www.elsevier.com/locate/inca/622836

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Keywords: Voting Multidimensional Experimental economics Conflict Resolution;

References

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  1. Casella, Alessandra & Gelman, Andrew & Palfrey, Thomas R, 2003. "An Experimental Study of Storable Votes," CEPR Discussion Papers 4081, C.E.P.R. Discussion Papers.
  2. Rafael Hortala-Vallve, 2007. "Qualitative Voting," Economics Series Working Papers 320, University of Oxford, Department of Economics.
  3. Sergiu Hart, 2008. "Discrete Colonel Blotto and General Lotto games," International Journal of Game Theory, Springer, vol. 36(3), pages 441-460, March.
  4. Casella, Alessandra & Palfrey, Thomas R. & Riezman, Raymond, 2006. "Minorities and storable votes," Working Papers 1261, California Institute of Technology, Division of the Humanities and Social Sciences.
  5. Engelmann, Dirk & Grimm, Veronika, 2008. "Mechanisms for efficient voting with private information about preferences," IWQW Discussion Paper Series 03/2008, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  6. Matthew O Jackson & Hugo F Sonnenschein, 2007. "Overcoming Incentive Constraints by Linking Decisions -super-1," Econometrica, Econometric Society, vol. 75(1), pages 241-257, 01.
  7. Fany Yuval, 2002. "Sophisticated Voting Under the Sequential Voting by Veto 1," Theory and Decision, Springer, vol. 53(4), pages 343-369, December.
  8. Casella, Alessandra, 2005. "Storable votes," Games and Economic Behavior, Elsevier, vol. 51(2), pages 391-419, May.
  9. Szentes, Balazs & Rosenthal, Robert W., 2003. "Three-object two-bidder simultaneous auctions: chopsticks and tetrahedra," Games and Economic Behavior, Elsevier, vol. 44(1), pages 114-133, July.
  10. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
  11. Lawrence D. Phillips & Carlos A. Bana e Costa, 2005. "Transparent prioritisation, budgeting and resource allocation with multi-criteria decision analysis and decision conferencing," LSE Research Online Documents on Economics 22742, London School of Economics and Political Science, LSE Library.
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Cited by:
  1. Alessandra Casella & Aniol Llorente-Saguer & Thomas R. Palfrey, 2010. "Competitive Equilibrium in Markets for Votes," Discussion Papers 0910-21, Columbia University, Department of Economics.
  2. Brian Roberson & Dmitriy Kvasov, 2010. "The Non-Constant-Sum Colonel Blotto Game," Purdue University Economics Working Papers 1252, Purdue University, Department of Economics.
  3. Ayala Arad & Ariel Rubinstein, 2012. "Multi-Dimensional Iterative Reasoning in Action: The Case of the Colonel Blotto Game," Levine's Working Paper Archive 786969000000000497, David K. Levine.
  4. John Duffy & Alexander Matros, 2013. "Stochastic Asymmetric Blotto Games: Theory and Experimental Evidence," Working Papers 509, University of Pittsburgh, Department of Economics, revised Nov 2013.
  5. Rafael Hortala-Vallve & Aniol Llorente-Saguer & Rosemarie Nagel, 2012. "The Role of Information in Different Bargaining Protocols," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2012_12, Max Planck Institute for Research on Collective Goods.

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