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Delay in Strategic Information Aggregation

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Author Info
Ettore Damiano
Hao Li
Wing Suen

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Abstract

We study a model of collective decision making in which agents vote on the decision repeatedly until they agree, with the agents receiving no exogenous new information between two voting rounds but incurring a delay cost. Although preference conflict between the agents makes information aggregation impossible in a single round of voting, in the equilibrium of the repeated voting game agents are increasingly more willing to vote their private information after each disagreement. Information is efficiently aggregated within a finite number of rounds. As delay becomes less costly, agents are less willing to vote their private information, and efficient information aggregation takes longer. Even as the delay cost converges to zero, agents are strictly better off in the repeated voting game than in any single round game for moderate degrees of initial conflict.

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Publisher Info
Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-311.

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Length: 38 pages
Date of creation: 14 Feb 2008
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-311

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Related research
Keywords: repeated voting; gradual concessions; small delay cost;

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Find related papers by JEL classification:
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

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References listed on IDEAS
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  1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January. [Downloadable!] (restricted)
  2. Admati, Anat R & Perry, Motty, 1987. "Strategic Delay in Bargaining," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 345-64, July. [Downloadable!] (restricted)
  3. Sakovics Jozsef, 1993. "Delay in Bargaining Games with Complete Information," Journal of Economic Theory, Elsevier, vol. 59(1), pages 78-95, February. [Downloadable!] (restricted)
  4. Li, Duozhe, 2007. "Bargaining with history-dependent preferences," Journal of Economic Theory, Elsevier, vol. 136(1), pages 695-708, September. [Downloadable!] (restricted)
  5. David M Kreps & Robert Wilson, 2003. "Sequential Equilibrium," Levine's Working Paper Archive 618897000000000813, David K. Levine. [Downloadable!]
    Other versions:
  6. Cramton, Peter C, 1992. "Strategic Delay in Bargaining with Two-Sided Uncertainty," Review of Economic Studies, Blackwell Publishing, vol. 59(1), pages 205-25, January. [Downloadable!] (restricted)
    Other versions:
  7. Muhamet Yildiz, 2004. "Waiting to Persuade," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 223-248, February. [Downloadable!] (restricted)
  8. Hao Li & Sherwin Rosen & Wing Suen, 2001. "Conflicts and Common Interests in Committees," American Economic Review, American Economic Association, vol. 91(5), pages 1478-1497, December. [Downloadable!] (restricted)
    Other versions:
  9. Fershtman Chaim & Seidmann Daniel J., 1993. "Deadline Effects and Inefficient Delay in Bargaining with Endogenous Commitment," Journal of Economic Theory, Elsevier, vol. 60(2), pages 306-321, August. [Downloadable!] (restricted)
  10. Joseph Farrell, 1987. "Cheap Talk, Coordination, and Entry," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 34-39, Spring. [Downloadable!] (restricted)
  11. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn. [Downloadable!] (restricted)
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