Group decision-making in the shadow of disagreement
AbstractA model of group decision-making is studied, in which one of two alternatives must be chosen. While group members differ in their valuations of the alternatives, everybody prefers agreement to disagreement. Our model is distinguished by three features: private information regarding valuations, varying intensities in the preference for one outcome over the other, and the option to declare neutrality in order to avoid disagreement. We uncover a variant on the âtyranny of the majorityâ: there is always an equilibrium in which the majority is more aggressive in pushing its alternative, thus enforcing their will via both numbers and voice. Under general conditions, however, an aggressive minority equilibrium inevitably makes an appearance, provided that the group is large enough. The notable exception is the special case of unanimity rule: we show that aggressive minority equilibria may never exist irrespective of group size. Aggressive minority equilibria invariably display a âtyranny of the minorityâ: it is always true that the increased aggression of the minority more than compensates for smaller numbers, leading to the minority outcome being implemented with larger probability than the majority alternative. We fully characterize the asymptotic behavior of this model as group size becomes large, and show that all equilibria must converge to one of three possible limit outcomes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 132 (2007)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- Eliaz, Kfir & Ray, Debraj & Razin, Ronny, 2004. "Group Decision-Making in the Shadow of Disagreement," CEPR Discussion Papers 4480, C.E.P.R. Discussion Papers.
- Debraj Ray & Kfir Eliaz & Ronny Razin, 2004. "Group Decision-Making in the Shadow of Disagreement," Working Papers 2004.83, Fondazione Eni Enrico Mattei.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jackson, Matthew O. & Sonnenschein, Hugo F., 2003.
"The Linking of Collective Decisions and Efficiency,"
1159, California Institute of Technology, Division of the Humanities and Social Sciences.
- Matthew O. Jackson & Hugo F. Sonnenschein, 2003. "The Linking of Collective Decisions and Efficiency," Microeconomics 0303007, EconWPA.
- Matthew O Jackson & Hugo F Sonnenschein, 2003. "The Linking of Collective Decisions and Efficiency," NajEcon Working Paper Reviews 666156000000000057, www.najecon.org.
- Casella, Alessandra, 2002.
CEPR Discussion Papers
3508, C.E.P.R. Discussion Papers.
- Ponsati, Clara & Sakovics, Jozsef, 1996. "Multiperson Bargaining over Two Alternatives," Games and Economic Behavior, Elsevier, vol. 12(2), pages 226-244, February.
- Kahneman, Daniel & Schkade, David & Sunstein, Cass R, 1998. "Shared Outrage and Erratic Awards: The Psychology of Punitive Damages," Journal of Risk and Uncertainty, Springer, vol. 16(1), pages 49-86, April.
- Philipson, Tomas J & Snyder, James M, Jr, 1996. " Equilibrium and Efficiency in an Organized Vote Market," Public Choice, Springer, vol. 89(3-4), pages 245-65, December.
- Matsushima, Hitoshi & Miyazaki, Koichi & Yagi, Nobuyuki, 2010.
"Role of linking mechanisms in multitask agency with hidden information,"
Journal of Economic Theory,
Elsevier, vol. 145(6), pages 2241-2259, November.
- Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2006. "Role of Linking Mechanisms in Multitask Agency with Hidden Information," CIRJE F-Series CIRJE-F-401, CIRJE, Faculty of Economics, University of Tokyo.
- Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2010. "Role of Linking Mechanisms in Multitask Agency with Hidden Information," CARF F-Series CARF-F-209, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
- Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2010. "Role of Linking Mechanisms in Multitask Agency with Hidden Information," CIRJE F-Series CIRJE-F-721, CIRJE, Faculty of Economics, University of Tokyo.
- Alistair Wilson, 2011.
"Costly Communication in Groups: Theory and an Experiment,"
488, University of Pittsburgh, Department of Economics, revised Jul 2012.
- Alistair Wilson, 2012. "Costly Communication in Groups: Theory and an Experiment," Working Papers 499, University of Pittsburgh, Department of Economics, revised Feb 2014.
- Rafael Hortala-Vallve, 2010.
"Inefficiencies on linking decisions,"
Social Choice and Welfare,
Springer, vol. 34(3), pages 471-486, March.
- Mehmet Ekmekci, 2008.
"Manipulation through political endorsements,"
1509, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.