Collective economic decisions and the discursive dilemma
AbstractMost economic decisions involve judgments. When decisions are taken collectively, various judgment aggregation problems may occur. Here we consider an aggregation problem called the "discursive dilemma", which is characterized by an inconsistency between the aggregate judgment on the premises for a conclusion and the aggregate judgment on the conclusion itself. It thus matter for the decision whether the group uses a premise- or a conclusion-based decisionmaking procedure. The current literature, primarily within jurisprudence, philosophy, and social choice, consider aggregation of qualitative judgments on propositions. Most economic decisions, however, involve quantitative judgments on economic variables. We develop a framework that is suitable for analyzing the relevance of the discursive dilemma for economic decisions. Assuming that decisions are reached either through majority voting or by averaging, we find that the dilemma cannot be ruled out, except under some restrictive assumptions about the relationship between the premise-variables and the conclusion.
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Bibliographic InfoPaper provided by Norges Bank in its series Working Paper with number 2005/3.
Length: 21 pages
Date of creation: 29 Jun 2005
Date of revision:
Collective economic decisions; Judgement aggregation; Inconsistency;
Find related papers by JEL classification:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-03 (All new papers)
- NEP-CDM-2005-07-03 (Collective Decision-Making)
- NEP-DCM-2005-07-03 (Discrete Choice Models)
- NEP-HPE-2005-07-03 (History & Philosophy of Economics)
- NEP-MAC-2005-07-03 (Macroeconomics)
- NEP-POL-2005-07-03 (Positive Political Economics)
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- Klaus Nehring & Clemens Puppe, 2008. "Consistent judgement aggregation: the truth-functional case," Social Choice and Welfare, Springer, vol. 31(1), pages 41-57, June.
- Carl Andreas Claussen & Øistein Røisland., 2007.
"A quantitative discursive dilemma,"
2007/07, Norges Bank, revised 24 Nov 2008.
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