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Optimal two stage committee voting rules

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Author Info

  • Ian Ayres

    (Yale Law School)

  • Colin Rowat

    (University of Birmingham)

  • Nasser Zakariya

    (FAS, Harvard University)

Abstract

We study option management by committee. Analysis is illustrated by tenure decisions. Our innovations are two-fold: we treat the committee's problem as one of social choice, not of information aggregation; and we endogenise the outside option: rejecting a candidate at either the probationary or tenure stage return the committee to a candidate pool. For committees with N members, we find three key results: (1) a candidate's fate depends only on the behaviour of two `weather-vane' committee members - generalised median voters; (2) enthusiastic assessments by one of these weather-vanes may harm a candidate's chances by increasing others' thresholds for hiring him; and (3) sunk time costs may lead voters who opposed hiring a candidate to favour tenuring him, even after a poor probationary performance. We also characterise the optimal voting rule when N=2. A patient or perceptive committee does best with a (weak) majority at the hiring stage and unanimity at the tenure stage. An impatient or imperceptive committee does best under a double (weak) majority rule. If particularly impatient or imperceptive, this rule implies that any hire is automatically tenured. Perversely, the performance of a patient, imperceptive committee improves as its perceptiveness further declines.

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Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 0412006.

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Length: 40 pages
Date of creation: 09 Dec 2004
Date of revision:
Handle: RePEc:wpa:wuwpga:0412006

Note: Type of Document - pdf; pages: 40. University of Birmingham, Department of Economics Working Paper, 04-23 (11 November 2004)
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Web page: http://128.118.178.162

Related research

Keywords: intertemporal strategic voting; real options; social choice; heterogenous priors; tenure;

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Cited by:
  1. Ian Ayres & Colin Rowat & Nasser Zakariya, 2011. "Optimal voting rules for two-member tenure committees," Social Choice and Welfare, Springer, vol. 36(2), pages 323-354, February.

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