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Information Aggregation, Costly Voting And Common Values

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Author Info
Ghosal, Sayantan (Department of Economics, University of Warwick)
Lockwood, Ben (Department of Economics, University of Warwick)

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Abstract

In a model of majority voting with common values and costly but voluntary participation, we show that in the vicinity of equilibrium, it is always Pareto-improving for more agents, on the average, to vote. This demonstrates that the negative voting externality identified by Borgers(2001) in the context of private values is always dominated by a positive informational externality. In addition, we show that multiple Pareto-ranked voting equilibria may exist and moreover, majority voting with compulsory participation can Pareto dominate majority voting with voluntary participation. Finally, we show that the inefficiency result is robust to limited preference heterogeneity

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File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/publications/twerp670.pdf
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Publisher Info
Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 670.

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Length: 21 pages
Date of creation: 2003
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Handle: RePEc:wrk:warwec:670

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Related research
Keywords: Voting ; information ; pivot ; externality ; inefficiency;

Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Hadar, Josef & Russell, William R, 1969. "Rules for Ordering Uncertain Prospects," American Economic Review, American Economic Association, vol. 59(1), pages 25-34, March. [Downloadable!] (restricted)
  2. Dekel, E. & Piccione, M., 1999. "Sequential Voting Procedures in Symmetric Binary Elections," Papers 3-99, Tel Aviv.
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  3. Feddersen, Timothy J & Pesendorfer, Wolfgang, 1996. "The Swing Voter's Curse," American Economic Review, American Economic Association, vol. 86(3), pages 408-24, June.
    Other versions:
    • Timothy J. Feddersen & Wolfgang Pesendorfer, 1995. "The Swing Voter's Curse," Discussion Papers 1064, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  4. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September. [Downloadable!] (restricted)
  5. Tilman Börgers, 2001. "Costly Voting," NajEcon Working Paper Reviews 625018000000000232, www.najecon.org. [Downloadable!]
  6. Martin J. Osborne & Jeffrey S. Rosenthal & Matthew A. Turner, 2000. "Meetings with Costly Participation," American Economic Review, American Economic Association, vol. 90(4), pages 927-943, September. [Downloadable!] (restricted)
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  7. Timothy Feddersen & Wolfgang Pesendorfer, 1997. "Voting Behavior and Information Aggregation in Elections with Private Information," Econometrica, Econometric Society, vol. 65(5), pages 1029-1058, September.
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  8. Nicola Persico, 2004. "Committee Design with Endogenous Information," Review of Economic Studies, Blackwell Publishing, vol. 71(1), pages 165-191, 01. [Downloadable!] (restricted)
  9. Tilman Borgers, 2004. "Costly Voting," American Economic Review, American Economic Association, vol. 94(1), pages 57-66, March. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ian Ayres & Colin Rowat & Nasser Zakariya, 2007. "Optimal Two Stage Committee Voting Rules," Discussion Papers 04-23RR, Department of Economics, University of Birmingham. [Downloadable!]
    Other versions:
  2. Stephen Coate & Michael Conlin & Andrea Moro, 2004. "The Performance of the Pivotal-Voter Model in Small-Scale Elections: Evidence from Texas Liquor Referenda," NBER Working Papers 10797, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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