Meritocracy, Egalitarianism and the Stability of Majoritarian Organizations
AbstractEgalitarianism and meritocracy are competing principles to distribute the joint benefits of cooperation. We examine the consequences of letting members of society vote between those two principles, in a context where groups of a certain size must be formed in order for individuals to become productive. Our setup induces a hedonic game of coalition formation. We study the existence of core stable partitions (organizational structures) of this game. We show that the inability of voters to commit to one distributional rule or another is a potential source of instability. But we also prove that, when stable organizational structures exist, they may be rich in form, and different than those predicted by alternative models of group formation. Non- segregated groups may arise within core stable structures. Stability is also compatible with the coexistence of meritocratic and egalitarian groups. These phenomena are robust, and persist under alternative variants of our initial model.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 737.
Date of creation: Feb 2014
Date of revision:
egalitarianism; meritocracy; coalition formation; hedonic games; core stability; assortative mating;
Find related papers by JEL classification:
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-06 (All new papers)
- NEP-CDM-2013-12-06 (Collective Decision-Making)
- NEP-GTH-2013-12-06 (Game Theory)
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