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A simple mechanism for resolving conflict

  • Hortala-Vallve, Rafael
  • Llorente-Saguer, Aniol

In Conflict Resolution situations where two parties with opposed preferences need to make a number of decisions simultaneously, we propose a simple mechanism that endows agents with a certain number of votes that can be distributed freely across issues. This mechanism allows parties to trade off their voting power across issues and extract gains from differences in the intensities of their preferences. The appealing properties of such a mechanism may be negated by strategic interactions among individuals. We test its properties using controlled laboratory experiments. We observe that equilibrium play increases over time and truthful/honest play decreases over time. The subjects almost reach the welfare predicted by the theory even when their behaviour is far from equilibrium. The fact that deviations from equilibrium do not do much damage to its welfare properties is a further argument in favour of the use of this mechanism in the real world.

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File URL: http://www.sciencedirect.com/science/article/pii/S0899-8256(10)00033-3
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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 70 (2010)
Issue (Month): 2 (November)
Pages: 375-391

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Handle: RePEc:eee:gamebe:v:70:y:2010:i:2:p:375-391
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  1. Casella, Alessandra, 2002. "Storable Votes," CEPR Discussion Papers 3508, C.E.P.R. Discussion Papers.
  2. Dirk Engelmann & Veronika Grimm, 2012. "Mechanisms for Efficient Voting with Private Information about Preferences," Economic Journal, Royal Economic Society, vol. 122(563), pages 1010-1041, 09.
  3. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
  4. Alessandra Casella & Thomas Palfrey & Raymond Riezman, 2005. "Minorities and Storable Votes," NBER Working Papers 11674, National Bureau of Economic Research, Inc.
  5. Rafael Hortala-Vallve, 2007. "Qualitative Voting," Economics Series Working Papers 320, University of Oxford, Department of Economics.
  6. Lawrence D. Phillips & Carlos A. Bana e Costa, 2005. "Transparent prioritisation, budgeting and resource allocation with multi-criteria decision analysis and decision conferencing," LSE Research Online Documents on Economics 22742, London School of Economics and Political Science, LSE Library.
  7. Szentes, Balazs & Rosenthal, Robert W., 2003. "Three-object two-bidder simultaneous auctions: chopsticks and tetrahedra," Games and Economic Behavior, Elsevier, vol. 44(1), pages 114-133, July.
  8. Sergiu Hart, 2006. "Discrete Colonel Blotto and General Lotto Games," Discussion Paper Series dp434, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
  9. Fany Yuval, 2002. "Sophisticated Voting Under the Sequential Voting by Veto 1," Theory and Decision, Springer, vol. 53(4), pages 343-369, December.
  10. Casella, Alessandra & Gelman, Andrew & Palfrey, Thomas R, 2003. "An Experimental Study of Storable Votes," CEPR Discussion Papers 4081, C.E.P.R. Discussion Papers.
  11. Matthew O Jackson & Hugo F Sonnenschein, 2007. "Overcoming Incentive Constraints by Linking Decisions -super-1," Econometrica, Econometric Society, vol. 75(1), pages 241-257, 01.
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