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Divided Majority and Information Aggregation: Theory and Experiment

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  • Laurent Bouton

    (Boston University)

  • Micael Castanheira

    (Université Libre de Bruxelles)

  • Aniol Llorente-Saguer

    ()
    (Max Planck Institute for Research on Collective Goods, Bonn)

Abstract

This paper both theoretically and experimentally studies the properties of plurality and approval voting when the majority is divided as a result of information imperfections. The minority backs a third alternative, which the majority views as strictly inferior. The majority thus faces two problems: aggregating information and coordinating to defeat the minority candidate. Two types of equilibria coexist under plurality: either voters aggregate information, but this requires splitting their votes, or they coordinate but cannot aggregate information. With approval voting, expected welfare is strictly higher, because some voters multiple vote to achieve both goals at once. In the laboratory, we observe both types of equilibrium under plurality. Which one is selected depends on the size of the minority. Approval voting vastly outperforms plurality. Finally, subject behavior suggests the need to study asymmetric equilibria.

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Bibliographic Info

Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2012_20.

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Date of creation: Nov 2012
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Handle: RePEc:mpg:wpaper:2012_20

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Keywords: Experiments; Multicandidate Elections; Plurality; Approval Voting;

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  1. César Martinelli, 2004. "Would Rational Voters Acquire Costly Information?," Levine's Bibliography 122247000000000593, UCLA Department of Economics.
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Cited by:
  1. Martin Gregor, 2013. "The Optimal Ballot Structure for Double-Member Districts," CERGE-EI Working Papers wp493, The Center for Economic Research and Graduate Education - Economic Institute, Prague.

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