Group Decision-Making in the Shadow of Disagreement
AbstractA model of group decision-making is studied, in which one of two alternatives must be chosen. While group members differ in their valuations of the alternatives, everybody prefers some alternative to disagreement. Our model is distinguished by three features: private information regarding valuations, varying intensities in the preference for one out-come over the other, and the option to declare neutrality in order to avoid disagreement. We uncover a variant on the “tyranny of the majority": there is always an equilibrium in which the majority is more aggressive in pushing its alternative, thus enforcing their will via both numbers and voice. However, under very general conditions an aggressive minority equilibrium inevitably makes an appearance, provided that the group is large enough. This equilibrium displays a “tyranny of the minority": it is always true that the increased aggression of the minority more than compensates for smaller number, leading to the minority outcome being implemented with larger probability than the majority alternative. In all cases the option to remain neutral ensures that the probability of disagreement is bounded away from one (as group size changes), regardless of the supermajority value needed for agreement, as long as it is not unanimity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.83.
Date of creation: May 2004
Date of revision:
Collective decision-making; Groups; Disagreements; Decision rules;
Other versions of this item:
- Eliaz, Kfir & Ray, Debraj & Razin, Ronny, 2007. "Group decision-making in the shadow of disagreement," Journal of Economic Theory, Elsevier, vol. 132(1), pages 236-273, January.
- Eliaz, Kfir & Ray, Debraj & Razin, Ronny, 2004. "Group Decision-Making in the Shadow of Disagreement," CEPR Discussion Papers 4480, C.E.P.R. Discussion Papers.
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
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.:
- Kahneman, Daniel & Schkade, David & Sunstein, Cass R, 1998. "Shared Outrage and Erratic Awards: The Psychology of Punitive Damages," Journal of Risk and Uncertainty, Springer, vol. 16(1), pages 49-86, April.
- Matthew O Jackson & Hugo F Sonnenschein, 2003.
"The Linking of Collective Decisions and Efficiency,"
NajEcon Working Paper Reviews
- Matthew O. Jackson & Hugo F. Sonnenschein, 2003. "The Linking of Collective Decisions and Efficiency," Microeconomics 0303007, EconWPA.
- Jackson, Matthew O. & Sonnenschein, Hugo F., 2003. "The Linking of Collective Decisions and Efficiency," Working Papers 1159, California Institute of Technology, Division of the Humanities and Social Sciences.
- Philipson, Tomas J & Snyder, James M, Jr, 1996. " Equilibrium and Efficiency in an Organized Vote Market," Public Choice, Springer, vol. 89(3-4), pages 245-65, December.
- Casella, Alessandra, 2005.
Games and Economic Behavior,
Elsevier, vol. 51(2), pages 391-419, May.
- Alessandra Casella, 2002. "Storable Votes," NBER Working Papers 9189, National Bureau of Economic Research, Inc.
- Alessandra Casella, 2002. "Storable votes," Discussion Papers 0102-71, Columbia University, Department of Economics.
- Casella, Alessandra, 2002. "Storable Votes," CEPR Discussion Papers 3508, C.E.P.R. Discussion Papers.
- Ponsati, Clara & Sakovics, Jozsef, 1996. "Multiperson Bargaining over Two Alternatives," Games and Economic Behavior, Elsevier, vol. 12(2), pages 226-244, February.
- Rafael Hortala-Vallve, 2010.
"Inefficiencies on linking decisions,"
Social Choice and Welfare,
Springer, vol. 34(3), pages 471-486, March.
- Mehmet Ekmekci, 2008.
"Manipulation through political endorsements,"
1509, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matsushima, Hitoshi & Miyazaki, Koichi & Yagi, Nobuyuki, 2010.
"Role of linking mechanisms in multitask agency with hidden information,"
Journal of Economic Theory,
Elsevier, vol. 145(6), pages 2241-2259, November.
- Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2010. "Role of Linking Mechanisms in Multitask Agency with Hidden Information," CIRJE F-Series CIRJE-F-721, CIRJE, Faculty of Economics, University of Tokyo.
- Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2006. "Role of Linking Mechanisms in Multitask Agency with Hidden Information," CIRJE F-Series CIRJE-F-401, CIRJE, Faculty of Economics, University of Tokyo.
- Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2010. "Role of Linking Mechanisms in Multitask Agency with Hidden Information," CARF F-Series CARF-F-209, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
- Alistair Wilson, 2011.
"Costly Communication in Groups: Theory and an Experiment,"
488, University of Pittsburgh, Department of Economics, revised Jul 2012.
- Alistair Wilson, 2012. "Costly Communication in Groups: Theory and an Experiment," Working Papers 499, University of Pittsburgh, Department of Economics, revised Feb 2014.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.