IDEAS home Printed from https://ideas.repec.org/a/kap/theord/v88y2020i4d10.1007_s11238-019-09741-4.html
   My bibliography  Save this article

On the instability of majority decision-making: testing the implications of the ‘chaos theorems’ in a laboratory experiment

Author

Listed:
  • Jan Sauermann

    (University of Cologne)

Abstract

In light of the so-called ‘chaos theorems’ from social choice theory, William Riker (W. H. Freeman and Company, San Francisco, 1982) argues that the indeterminacy of majority rule leads to voting cycles making democratic decisions arbitrary and meaningless. Moreover, when the core is empty, majority instability correlates with the level of conflict among actors. This study uses laboratory committee decision-making experiments to provide an empirical test of both aspects of Riker’s argument. Committees make repeated majority decisions over 20 periods picking points from a two-dimensional policy space. The experiment manipulates committee members’ preferences and thus varies the existence of a core and the level of conflict between group members. The experimental results contradict Riker’s interpretation of the chaos theorems’ implications. Thus, the core exhibits less attraction than generally assumed. Moreover, an empty core is not associated with increased majority rule instability. Instead, conflicting preferences lead to more instability irrespective of the existence of an equilibrium.

Suggested Citation

  • Jan Sauermann, 2020. "On the instability of majority decision-making: testing the implications of the ‘chaos theorems’ in a laboratory experiment," Theory and Decision, Springer, vol. 88(4), pages 505-526, May.
  • Handle: RePEc:kap:theord:v:88:y:2020:i:4:d:10.1007_s11238-019-09741-4
    DOI: 10.1007/s11238-019-09741-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11238-019-09741-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11238-019-09741-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ben Greiner, 2015. "Subject pool recruitment procedures: organizing experiments with ORSEE," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 114-125, July.
    2. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-672, June.
    3. Thomas Romer & Howard Rosenthal, 1978. "Political resource allocation, controlled agendas, and the status quo," Public Choice, Springer, vol. 33(4), pages 27-43, December.
    4. Jan Sauermann & André Kaiser, 2010. "Taking Others into Account: Self‐Interest and Fairness in Majority Decision Making," American Journal of Political Science, John Wiley & Sons, vol. 54(3), pages 667-685, July.
    5. Stratmann, Thomas, 1996. "Instability of Collective Decisions? Testing for Cyclical Majorities," Public Choice, Springer, vol. 88(1-2), pages 15-28, July.
    6. Smith, Vernon L, 1976. "Experimental Economics: Induced Value Theory," American Economic Review, American Economic Association, vol. 66(2), pages 274-279, May.
    7. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    8. Kenneth Shepsle & Barry Weingast, 1981. "Structure-induced equilibrium and legislative choice," Public Choice, Springer, vol. 37(3), pages 503-519, January.
    9. Cheryl L. Eavey, 1991. "Patterns of Distribution in Spatial Games," Rationality and Society, , vol. 3(4), pages 450-474, October.
    10. McKelvey, Richard D, 1979. "General Conditions for Global Intransitivities in Formal Voting Models," Econometrica, Econometric Society, vol. 47(5), pages 1085-1112, September.
    11. E. Ostrom, 2010. "A Behavioral Approach to the Rational Choice Theory of Collective Action Presidential Address, American political Science Association, 1997," Public administration issues, Higher School of Economics, issue 1, pages 5-52.
    12. Fiorina, Morris P. & Plott, Charles R., 1978. "Committee Decisions under Majority Rule: An Experimental Study," American Political Science Review, Cambridge University Press, vol. 72(2), pages 575-598, June.
    13. McKelvey, Richard D., 1976. "Intransitivities in multidimensional voting models and some implications for agenda control," Journal of Economic Theory, Elsevier, vol. 12(3), pages 472-482, June.
    14. -, 1986. "Agenda = Agenda," Series Históricas 8749, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    15. Wilson, Rick K., 2008. "Endogenous Properties of Equilibrium and Disequilibrium in Spatial Committee Games," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 92, pages 872-879, Elsevier.
    16. Sauermann, Jan, 2016. "Committee Decisions under Majority Rule Revisited," Journal of Experimental Political Science, Cambridge University Press, vol. 3(2), pages 185-196, January.
    17. Browne, Eric C. & Hamm, Keith E., 1996. "Legislative Politics and the Paradox of Voting: Electoral Reform in Fourth Republic France," British Journal of Political Science, Cambridge University Press, vol. 26(2), pages 165-198, April.
    18. Riker, William H., 1980. "Implications from the Disequilibrium of Majority Rule for the Study of Institutions," American Political Science Review, Cambridge University Press, vol. 74(2), pages 432-446, June.
    19. Norman Schofield, 1978. "Instability of Simple Dynamic Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(3), pages 575-594.
    20. Sauermann, Jan & Beckmann, Paul, 2019. "The influence of group size on distributional fairness under voting by veto," European Journal of Political Economy, Elsevier, vol. 56(C), pages 90-102.
    21. McKelvey, Richard D. & Ordeshook, Peter C. & Winer, Mark D., 1978. "The Competitive Solution for N-Person Games Without Transferable Utility, With an Application to Committee Games," American Political Science Review, Cambridge University Press, vol. 72(2), pages 599-615, June.
    22. Davis, Otto A & DeGroot, Morris H & Hinich, Melvin J, 1972. "Social Preference Orderings and Majority Rule," Econometrica, Econometric Society, vol. 40(1), pages 147-157, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sauermann, Jan & Schwaninger, Manuel & Kittel, Bernhard, 2022. "Making and breaking coalitions: Strategic sophistication and prosociality in majority decisions," European Journal of Political Economy, Elsevier, vol. 71(C).
    2. de Groot Ruiz, Adrian & Ramer, Roald & Schram, Arthur, 2016. "Formal versus informal legislative bargaining," Games and Economic Behavior, Elsevier, vol. 96(C), pages 1-17.
    3. Cheryl L. Eavey & Gary J. Miller, 1995. "Subcommittee Agenda Control," Journal of Theoretical Politics, , vol. 7(2), pages 125-156, April.
    4. Adrian Deemen, 2014. "On the empirical relevance of Condorcet’s paradox," Public Choice, Springer, vol. 158(3), pages 311-330, March.
    5. Kenneth Koford, 1982. "Why so much stability? An optimistic view of the possibility of rational legislative decisionmaking," Public Choice, Springer, vol. 38(1), pages 3-19, March.
    6. John Carter & David Schap, 1987. "Executive veto, legislative override, and structure-induced equilibrium," Public Choice, Springer, vol. 52(3), pages 227-244, January.
    7. Itai Sened, 1991. "Contemporary Theory of Institutions in Perspective," Journal of Theoretical Politics, , vol. 3(4), pages 379-402, October.
    8. Thomas Bräuninger, 2007. "Stability in Spatial Voting Games with Restricted Preference Maximizing," Journal of Theoretical Politics, , vol. 19(2), pages 173-191, April.
    9. Tovey, Craig A., 2010. "The instability of instability of centered distributions," Mathematical Social Sciences, Elsevier, vol. 59(1), pages 53-73, January.
    10. Thomas R. Palfrey, 2005. "Laboratory Experiments in Political Economy," Working Papers 91, Princeton University, Department of Economics, Center for Economic Policy Studies..
    11. repec:pri:cepsud:111palfrey is not listed on IDEAS
    12. Urs Fischbacher & Simeon Schudy, 2020. "Agenda Control And Reciprocity In Sequential Voting Decisions," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1813-1829, October.
    13. Paulo Pereira, 2000. "From Schumpeterian Democracy to Constitutional Democracy," Constitutional Political Economy, Springer, vol. 11(1), pages 69-86, March.
    14. Kenneth A. Shepsle, 1989. "Studying Institutions," Journal of Theoretical Politics, , vol. 1(2), pages 131-147, April.
    15. Randall Holcombe, 1989. "The median voter model in public choice theory," Public Choice, Springer, vol. 61(2), pages 115-125, May.
    16. Kenneth Shepsle & Barry Weingast, 2012. "Why so much stability? Majority voting, legislative institutions, and Gordon Tullock," Public Choice, Springer, vol. 152(1), pages 83-95, July.
    17. Keith Dougherty & Brian Pitts & Justin Moeller & Robi Ragan, 2014. "An experimental study of the efficiency of unanimity rule and majority rule," Public Choice, Springer, vol. 158(3), pages 359-382, March.
    18. Dougherty, Keith L. & Kisaalita, Alice & McKissick, Jordan & Katz, Evan, 2020. "Stopping rules for majority voting: A public choice experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 353-364.
    19. Thomas R. Palfrey, 2005. "Laboratory Experiments in Political Economy," Working Papers 91, Princeton University, Department of Economics, Center for Economic Policy Studies..
    20. Kalandrakis, Anastassios, 2004. "A three-player dynamic majoritarian bargaining game," Journal of Economic Theory, Elsevier, vol. 116(2), pages 294-322, June.
    21. C.Y. Cyrus Chu & Meng-Yu Liang, 2022. "Why Are All Communist Countries Dictatorial?," IEAS Working Paper : academic research 22-A002, Institute of Economics, Academia Sinica, Taipei, Taiwan.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:theord:v:88:y:2020:i:4:d:10.1007_s11238-019-09741-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.