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Group formation and governance

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Author Info
Ludovic Renou ()
Abstract

This paper studies the impact of the governance of a group, whether be it unanimity, simple majority or qualified majority, on its (endogenously derived) size, composition, and inclination to change the status quo. Somewhat surprisingly, we show that not only unanimity might favor the formation of larger groups than majority, but also a change of status quo.

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File URL: http://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp08-15.pdf
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 08/15.

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Date of creation: Apr 2008
Date of revision: May 2008
Handle: RePEc:lec:leecon:08/15

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Related research
Keywords: groups endogenous formation economies of scale loss of control governance unanimity majority

Find related papers by JEL classification:
D7 - Microeconomics - - Analysis of Collective Decision-Making

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  7. Kamien, Morton I & Zang, Israel, 1993. "Competing Research Joint Ventures," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 2(1), pages 23-40, Spring.
  8. Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December. [Downloadable!] (restricted)
  9. Holmstrom, Bengt & Myerson, Roger B, 1983. "Efficient and Durable Decision Rules with Incomplete Information," Econometrica, Econometric Society, vol. 51(6), pages 1799-819, November. [Downloadable!] (restricted)
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  10. Giovanni Maggi & Massimo Morelli, 2006. "Self-Enforcing Voting in International Organizations," American Economic Review, American Economic Association, vol. 96(4), pages 1137-1158, September.
  11. Besley, Timothy & Coate, Stephen, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 85-114, February.
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  12. Matthias Messner & Mattias K. Polborn, 2004. "Voting on Majority Rules," Review of Economic Studies, Blackwell Publishing, vol. 71(1), pages 115-132, 01. [Downloadable!] (restricted)
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