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Public Decisions: Solidarity and the Status Quo

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  • GORDON, Sidartha

Abstract

A public decision model specifies a fixed set of alternatives A, a variable population, and a fixed set of admissible preferences over A, common to all agents. We study the implications, for any social choice function, of the principle of solidarity, in the class of all such models. The principle says that when the environment changes, all agents not responsible for the change should all be affected in the same direction: either all weakly win, or all weakly lose. We consider two formulations of this principle: population-monotonicity (Thomson, 1983); and replacement-domination (Moulin, 1987). Under weak additional requirements, but regardless of the domain of preferences considered, each of the two conditions implies (i) coalition-strategy-proofness; (ii) that the choice only depends on the set of preferences that are present in the society and not on the labels of agents, nor on the number of agents having a particular preference; (iii) that there exists a status quo point, i.e. an alternative always weakly Pareto-dominated by the alternative selected by the rule. We also prove that replacement-domination is generally at least as strong as population-monotonicity.

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Bibliographic Info

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 16-2006.

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Length: 34 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:mtl:montec:16-2006

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Keywords: Population-monotonicity; replacement-domination; solidarity; strategy-proofness; coalition-strategy-proofness; public decision; status quo;

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References

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  1. Moulin, Herve, 1987. "The Pure Compensation Problem: Egalitarianism versus Laissez-Fairism," The Quarterly Journal of Economics, MIT Press, vol. 102(4), pages 769-83, November.
  2. Berga, Dolors, 1998. "Strategy-proofness and single-plateaued preferences," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 105-120, March.
  3. GORDON, Sidartha, 2006. "Solidarity in Choosing a Location on a Cycle," Cahiers de recherche 17-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  4. Vohra, Rakesh V., 1999. "The replacement principle and tree structured preferences," Economics Letters, Elsevier, vol. 63(2), pages 175-180, May.
  5. Ching, S. & Thomson, W., 1993. "Population-Monotonic Solutions in Public Good Economies with Single- Peaked Preferences," RCER Working Papers 362, University of Rochester - Center for Economic Research (RCER).
  6. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
  7. GORDON, Sidartha, 2006. "Public Decisions: Solidarity and the Status Quo," Cahiers de recherche 2006-05, Universite de Montreal, Departement de sciences economiques.
  8. Ehlers, Lars, 2002. "Multiple public goods and lexicographic preferences: replacement principle," Journal of Mathematical Economics, Elsevier, vol. 37(1), pages 1-15, February.
  9. Ehlers, Lars & Peters, Hans & Storcken, Ton, 2002. "Strategy-Proof Probabilistic Decision Schemes for One-Dimensional Single-Peaked Preferences," Journal of Economic Theory, Elsevier, vol. 105(2), pages 408-434, August.
  10. Salvador Barbera & Matthew Jackson, 1991. "A Characterization of Strategy-Proof Social Choice Functions for Economies with Pure Public Goods," Discussion Papers 964, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  11. Thomson, William, 1983. "Problems of fair division and the Egalitarian solution," Journal of Economic Theory, Elsevier, vol. 31(2), pages 211-226, December.
  12. William Thomson, 1999. "Welfare-domination under preference-replacement: A survey and open questions," Social Choice and Welfare, Springer, vol. 16(3), pages 373-394.
  13. James Schummer & Rakesh V. Vohra, 1999. "Strategy-proof Location on a Network," Discussion Papers 1253, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  14. Eiichi Miyagawa, 2001. "Locating libraries on a street," Social Choice and Welfare, Springer, vol. 18(3), pages 527-541.
  15. William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
  16. Thomson, William, 1993. "The replacement principle in public good economies with single-peaked preferences," Economics Letters, Elsevier, vol. 42(1), pages 31-36.
  17. Bettina Klaus, 2001. "Target Rules for Public Choice Economies on Tree Networks and in Euclidean Spaces," Theory and Decision, Springer, vol. 51(1), pages 13-29, August.
  18. Ehlers, Lars, 2003. "Multiple public goods, lexicographic preferences, and single-plateaued preference rules," Games and Economic Behavior, Elsevier, vol. 43(1), pages 1-27, April.
  19. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
  20. Ehlers, Lars & Klaus, Bettina, 2001. " Solidarity and Probabilistic Target Rules," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(2), pages 167-84.
  21. Gibbard, Allan, 1977. "Manipulation of Schemes That Mix Voting with Chance," Econometrica, Econometric Society, vol. 45(3), pages 665-81, April.
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Citations

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Cited by:
  1. BOCHET, Olivier & GORDON, Sidartha, 2008. "Priorities in the Location of Multiple Public Facilities," Cahiers de recherche 2008-07, Universite de Montreal, Departement de sciences economiques.
  2. Bu, Nanyang, 2013. "Unfolding the mystery of false-name-proofness," Economics Letters, Elsevier, vol. 120(3), pages 559-561.
  3. GORDON, Sidartha, 2006. "Public Decisions: Solidarity and the Status Quo," Cahiers de recherche 16-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  4. Walter Bossert & Yves Sprumont, 2012. "Strategy-proof Preference Aggregation," Cahiers de recherche 12-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  5. GORDON, Sidartha, 2006. "Solidarity in Choosing a Location on a Cycle," Cahiers de recherche 17-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.

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