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Group formation and governance

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  • Ludovic Renou

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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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Bibliographic Info

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: Nov 2008
Handle: RePEc:lec:leecon:08/15

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Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
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Keywords: groups; endogenous formation; economies of scale; loss of control; governance; unanimity; majority;

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References

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  1. Salvador Barbera & Matthew O. Jackson, 2004. "Choosing How to Choose: Self-Stable Majority Rules and Constitutions," The Quarterly Journal of Economics, MIT Press, vol. 119(3), pages 1011-1048, August.
  2. Volker Nocke, 1999. "Cartel Stability under Capacity Constraints: The Traditional View Restored," STICERD - Economics of Industry Papers 23, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  3. Kohler, Marion, 2002. "Coalition formation in international monetary policy games," Journal of International Economics, Elsevier, vol. 56(2), pages 371-385, March.
  4. Konishi, Hideo & Ray, Debraj, 2003. "Coalition formation as a dynamic process," Journal of Economic Theory, Elsevier, vol. 110(1), pages 1-41, May.
  5. d'ASPREMONT, Claude & JACQUEMIN, Alexis, . "Cooperative and noncooperative R&D in duopoly with spillovers," CORE Discussion Papers RP -823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Martin J. Osborne & Rabee Tourky, 2008. "Party Formation in Single-Issue Politics," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 974-1005, 09.
  7. Garance Genicot & Debraj Ray, 2003. "Group Formation in Risk--Sharing Arrangements," Review of Economic Studies, Wiley Blackwell, vol. 70(1), pages 87-113, January.
  8. Giovanni Maggi & Massimo Morelli, 2006. "Self-Enforcing Voting in International Organizations," American Economic Review, American Economic Association, vol. 96(4), pages 1137-1158, September.
  9. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
  10. Leech, D., 2000. "Members' Voting Power in the Governance of the International Monetary Fund," The Warwick Economics Research Paper Series (TWERPS) 583, University of Warwick, Department of Economics.
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Cited by:
  1. De Fraja, Gianni & Sákovics, József, 2012. "Exclusive nightclubs and lonely hearts columns: Non-monotone participation in optional intermediation," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 618-632.

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