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Simple decision rules in small groups: Collegial rule vs. rotational rule

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  • Shadmehr, Mehdi

Abstract

I analyze the decision by ex ante identical group members with private preferences who must choose between two simple power-sharing schemes: collegial rule and rotational rule. Under collegial rule, members simultaneously express their preferred decisions, and the final decision takes the form of a simple compromise: the average of expressed decisions. Under rotational rule, one member is given the full authority to make decisions for a period of time, but this role (potentially) rotates among members. I identify the trade off between preference aggregation and information aggregation, and its interaction with group size and the extent of preference alignment among members.

Suggested Citation

  • Shadmehr, Mehdi, 2015. "Simple decision rules in small groups: Collegial rule vs. rotational rule," Journal of Economic Behavior & Organization, Elsevier, vol. 113(C), pages 51-63.
    • Handle: RePEc:eee:jeborg:v:113:y:2015:i:c:p:51-63
    DOI: 10.1016/j.jebo.2015.02.011
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    References listed on IDEAS

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    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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