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The option to wait in collective decisions and optimal majority rules

Author

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  • Messner, Matthias
  • Polborn, Mattias K.

Abstract

We consider a model in which voters over time receive more information about their preferences concerning an irreversible social decision. Voters can either implement the project in the first period, or they can postpone the decision to the second period. We analyze the effects of different majority rules. Individual first period voting behavior may become “less conservative” under supermajority rules, and it is even possible that a project is implemented in the first period under a supermajority rule that would not be implemented under simple majority rule.

Suggested Citation

  • Messner, Matthias & Polborn, Mattias K., 2012. "The option to wait in collective decisions and optimal majority rules," Journal of Public Economics, Elsevier, vol. 96(5), pages 524-540.
  • Handle: RePEc:eee:pubeco:v:96:y:2012:i:5:p:524-540
    DOI: 10.1016/j.jpubeco.2012.01.002
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:sochwe:v:48:y:2017:i:4:d:10.1007_s00355-017-1043-y is not listed on IDEAS
    2. Inukai, Keigo & Kawata, Keisuke & Sasaki, Masaru, 2017. "Committee Search with Ex-ante Heterogeneous Agents: Theory and Experimental Evidence," IZA Discussion Papers 10760, Institute for the Study of Labor (IZA).
    3. Christian Roessler & Sandro Shelegia & Bruno Strulovici, 2013. "The Roman Metro Problem: Dynamic Voting and the Limited Power of Commitment," Discussion Papers 1560, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Chan, Jimmy & Lizzeri, Alessandro & Suen, Wing & Yariv, Leeat, 2015. "Deliberating Collective Decisions," CEPR Discussion Papers 10466, C.E.P.R. Discussion Papers.
    5. Mikhail Freer & Cesar Martinelli & Siyu Wang, 2018. "Collective Experimentation: A Laboratory Study," Working Papers 1066, George Mason University, Interdisciplinary Center for Economic Science.
    6. Schnakenberg, Keith E., 2015. "Expert advice to a voting body," Journal of Economic Theory, Elsevier, vol. 160(C), pages 102-113.
    7. Louis, Philippos, 2015. "Learning aversion and voting rules in collective decision making," Economics Letters, Elsevier, vol. 133(C), pages 24-26.

    More about this item

    Keywords

    Supermajority rules; Information; Investment; Option value;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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