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The Allocation of Resources by Voting

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Author Info
Barzel, Yoram
Sass, Tim R

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Abstract

A general theory of voting, which explains under what conditions voting will be chosen as a means for allocating resources and how the constitution that governs the voting will be structured, is presented. It is hypothesized that developers of voting organizations will structure their organizations in order to maximize the value of shares sold by minimizing the expected costs of wealth transfer and decision-making in the voting organization. Implications regarding the allocation of votes and assessments within the organization, the domain of voting decision, and the optimal voting rule are tested with data on the constitutional structure of condominium homeowner associations. Copyright 1990, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 105 (1990)
Issue (Month): 3 (August)
Pages: 745-71
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Handle: RePEc:tpr:qjecon:v:105:y:1990:i:3:p:745-71

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(explanations, 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.)

  1. Danny Ben-Shahar & Eyal Sulganik, 2005. "Can Co-Owners Agree to Disagree? A Theoretical Examination of Voting Rules in Co-Ownerships," The Journal of Real Estate Finance and Economics, Springer, vol. 31(2), pages 207-223, September. [Downloadable!] (restricted)
  2. Oliver Hart & John Moore, 1998. "Cooperatives vs. Outside Ownership," NBER Working Papers 6421, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Deng, Feng, 2003. "Comparative urban institutions and intertemporal externality: a revisit of the Coase conjecture," MPRA Paper 2223, University Library of Munich, Germany, revised 08 Feb 2007. [Downloadable!]
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