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Majority voting leads to unanimity

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Author Info

  • Geir Asheim

    ()

  • Carl Claussen

    ()

  • Tore Nilssen

    ()

Abstract

We consider a situation where society decides, through majority voting in a secret ballot, between the alternatives of ‘reform’ and ‘status quo’. Reform is assumed to create a minority of winners, while being efficient in the Kaldor-Hicks sense. We explore the consequences of allowing binding transfers between voters conditional on the chosen alternative. In particular, we establish conditions under which the winners wish to compensate all losers, thus leading to unanimity for reform, rather than compensating some losers to form a non-maximal majority. The analysis employs concepts from cooperative game theory.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s00182-006-0042-5
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Bibliographic Info

Article provided by Springer in its journal International Journal of Game Theory.

Volume (Year): 35 (2006)
Issue (Month): 1 (December)
Pages: 91-110

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Handle: RePEc:spr:jogath:v:35:y:2006:i:1:p:91-110

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Related research

Keywords: Majority voting; Core; Cooperative game theory; D72; C71;

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References

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  1. David P. Baron, 2001. "Theories of Strategic Nonmarket Participation: Majority-Rule and Executive Institutions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 47-89, 03.
  2. Mathias Dewatripont & Gérard Roland, 1997. "Transition as a process of large-scale institutional change," ULB Institutional Repository 2013/9659, ULB -- Universite Libre de Bruxelles.
  3. Steven Brams & Michael Jones & D. Kilgour, 2005. "Forming stable coalitions: The process matters," Public Choice, Springer, vol. 125(1), pages 67-94, July.
  4. Sanjay Jain & Sharun W. Mukand, 2003. "Redistributive Promises and the Adoption of Economic Reform," American Economic Review, American Economic Association, vol. 93(1), pages 256-264, March.
  5. C. A. Claussen, 2002. "On the Dynamic Consistency of Reform and Compensation Schemes," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(3), pages 133-144.
  6. Sebastian Edwards & Daniel Lederman, 1998. "The Political Economy of Unilateral Trade Liberalization: The Case of Chile," NBER Working Papers 6510, National Bureau of Economic Research, Inc.
  7. Steven J. Brams & Peter C. Fishburn, 1996. "Minimal winning coalitions in weighted-majority voting games," Social Choice and Welfare, Springer, vol. 13(4), pages 397-417.
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Cited by:
  1. C. A. Claussen, 2002. "On the Dynamic Consistency of Reform and Compensation Schemes," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(3), pages 133-144.
  2. Corinna Ahlfeld, 2010. "Reputation Sells -Compensation Payments in the Political Sphere," Departmental Discussion Papers 145, University of Goettingen, Department of Economics.

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