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Optimal use of scarce information: When partisan voters are socially useful

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Author Info
Paolo Balduzzi () (Department of Economics, University of Milan-Bicocca)
Abstract

We develop a model of simultaneous and sequential voting in a committee where members do not share their private information and do not have the same preferences. When objective functions differ, an optimal order in the sequential game can be found, leading to a unique socially optimal equilibrium. Our result rationalizes the presence of biased (i.e., partisan) voters in small committees as a way of reaching social optimality.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper87.pdf
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File Function: First version, 2005
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Publisher Info
Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 87.

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Length: 35 pages
Date of creation: Mar 2005
Date of revision: Mar 2005
Handle: RePEc:mib:wpaper:87

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Related research
Keywords: voting behaviour; private information; sequential games;

Find related papers by JEL classification:
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

References listed on IDEAS
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  1. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-70, Summer. [Downloadable!] (restricted)
  2. Ottaviani, Marco & Sorensen, Peter, 2001. "Information aggregation in debate: who should speak first?," Journal of Public Economics, Elsevier, vol. 81(3), pages 393-421, September. [Downloadable!] (restricted)
  3. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October. [Downloadable!] (restricted)
  4. Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August. [Downloadable!] (restricted)
  5. Lones Smith & Peter Sorensen, 2000. "Pathological Outcomes of Observational Learning," Econometrica, Econometric Society, vol. 68(2), pages 371-398, March.
    Other versions:
  6. Feddersen, Timothy J & Pesendorfer, Wolfgang, 1996. "The Swing Voter's Curse," American Economic Review, American Economic Association, vol. 86(3), pages 408-24, June.
    Other versions:
    • Timothy J. Feddersen & Wolfgang Pesendorfer, 1995. "The Swing Voter's Curse," Discussion Papers 1064, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  7. Scharfstein, David S & Stein, Jeremy C, 1990. "Herd Behavior and Investment," American Economic Review, American Economic Association, vol. 80(3), pages 465-79, June.
    Other versions:
  8. Timothy Feddersen & Wolfgang Pesendorfer, 1997. "Voting Behavior and Information Aggregation in Elections with Private Information," Econometrica, Econometric Society, vol. 65(5), pages 1029-1058, September.
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  9. Goeree, Jacob & Palfrey, Thomas & Rogers, Brian, 2003. "Social learning with private and common values," Working Papers 1187, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  10. Eddie Dekel & Michele Piccione, 2001. "Sequential Voting Procedures in Symmetric Binary Elections," Journal of Political Economy, University of Chicago Press, vol. 108(1), pages 34-55, February. [Downloadable!] (restricted)
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  11. Sloth Birgitte, 1993. "The Theory of Voting and Equilibria in Noncooperative Games," Games and Economic Behavior, Elsevier, vol. 5(1), pages 152-169, January. [Downloadable!] (restricted)
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