On the Optimal Composition of Committees
AbstractThis paper derives a simple characterization of how to optimally divide an organization's experts into different decision-making committees. The focus is on many three-member committees that make decisions by a simple majority rule. We find that the allocation of experts to committees is optimal if and only if it minimizes the sum of the products of the experts' skills in each committee. As a result, given the experts of any two committees, the product of the experts' skills should be as similar as possible in the two committees, and it is never optimal to have the three worst experts in one committee and the three best experts in another.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7963.
Length: 15 pages
Date of creation: Feb 2014
Date of revision:
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Other versions of this item:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-01 (All new papers)
- NEP-CDM-2014-03-01 (Collective Decision-Making)
- NEP-MIC-2014-03-01 (Microeconomics)
- NEP-NET-2014-03-01 (Network Economics)
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