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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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Related research

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

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References

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  1. Kohler, Marion, 2002. "Coalition formation in international monetary policy games," Journal of International Economics, Elsevier, vol. 56(2), pages 371-385, March.
  2. Garance Genicot & Debraj Ray, 2003. "Group Formation in Risk-Sharing Arrangements," Review of Economic Studies, Oxford University Press, vol. 70(1), pages 87-113.
  3. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
  4. 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.
  5. Hideo Konishi & Debraj Ray, 2000. "Coalition Formation as a Dynamic Process," Boston College Working Papers in Economics 478, Boston College Department of Economics, revised 15 Apr 2002.
  6. Giovanni Maggi & Massimo Morelli, 2006. "Self-Enforcing Voting in International Organizations," American Economic Review, American Economic Association, vol. 96(4), pages 1137-1158, September.
  7. Volker Nocke, 1999. "Cartel stability under capacity constraints: the traditional view restored," LSE Research Online Documents on Economics 6751, London School of Economics and Political Science, LSE Library.
  8. 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.
  9. 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.
  10. Jackson, Matthew O. & Barbera, Salvador, 2002. "Choosing How Choose: Self-Stable Majority Rules," Working Papers 1145, California Institute of Technology, Division of the Humanities and Social Sciences.
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Cited by:
  1. De Fraja, Gianni & Sákovics, József, 2010. "Exclusive Nightclubs and Lonely Hearts Columns: Non-monotone Participation in Optional Intermediation," CEPR Discussion Papers 8059, C.E.P.R. Discussion Papers.

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