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A non-monetary form of Clarke pivotal voting

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  • Pivato, Marcus

Abstract

The Clarke Pivotal Voting Mechanism (CPVM) elicits truthful revelation of utility functions by requiring any `pivotal' voter to pay a monetary `Clarke tax'. This neglects wealth effects and gives disproportionate power to rich voters. We propose to replace the `Clarke tax' with a lottery, wherein the pivotal voter risks long-term exclusion from the CPVM (and any other formal political participation). The resulting voting mechanism is nonmanipulable, politically egalitarian, and implements something close to Relative Utilitarianism.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3964.

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Date of creation: 10 Jul 2007
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Handle: RePEc:pra:mprapa:3964

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Keywords: Pivotal Voting Mechanism; demand-revealing mechanism; Groves-Clarke; Clarke tax; Relative Utilitarianism;

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  1. Edi Karni, 1998. "Impartiality: Definition and Representation," Econometrica, Econometric Society, vol. 66(6), pages 1405-1416, November.
  2. John C. Harsanyi, 1953. "Cardinal Utility in Welfare Economics and in the Theory of Risk-taking," Journal of Political Economy, University of Chicago Press, vol. 61, pages 434.
  3. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
  4. I. Good, 1977. "Justice in voting by demand revelation," Public Choice, Springer, vol. 29(2), pages 65-70, March.
  5. Uzi Segal, 2000. "Let's Agree That All Dictatorships Are Equally Bad," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 569-589, June.
  6. Ng, Yew-Kwang, 1975. "Bentham or Bergson? Finite Sensibility, Utility Functions and Social Welfare Functions," Review of Economic Studies, Wiley Blackwell, vol. 42(4), pages 545-69, October.
  7. Sjostrom, Tomas, 1991. "A new characterization of the Groves- Clarke mechanism," Economics Letters, Elsevier, vol. 36(3), pages 263-267, July.
  8. Amrita Dhillon & Jean-Francois Mertens, 1999. "Relative Utilitarianism," Econometrica, Econometric Society, vol. 67(3), pages 471-498, May.
  9. Maskin, Eric, 1978. "A Theorem on Utilitarianism," Review of Economic Studies, Wiley Blackwell, vol. 45(1), pages 93-96, February.
  10. Amrita Dhillon, 1998. "Extended Pareto rules and relative utilitarianism," Social Choice and Welfare, Springer, vol. 15(4), pages 521-542.
  11. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63, pages 309.
  12. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
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