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An experiment in the demand-revealing process

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  • T. Tideman

Abstract

The principal findings of this experiment are: It is somewhat time-consuming but not otherwise difficult to employ the demand-revealing process in groups of 10 to 60. The ability of the demand-revealing process to take account of intensities of preferences is appreciated by many of the persons who have used the process, but the departure from one-man-one-vote is strongly resisted by others. The outcomes reached by demand-revealing differed from majority rule in about one-tenth of the cases. The improvement in efficiency associated with these reversals of majority rule was 2.25 percent of the net benefit of making the efficient decisions. The Clarke taxes, which would decline in percentage terms as group size increased, were 3.04 percent of the net value of efficient decisions for the decisions studied. Copyright Martinus Nijhoff Publishers 1983

Suggested Citation

  • T. Tideman, 1983. "An experiment in the demand-revealing process," Public Choice, Springer, vol. 41(3), pages 387-401, January.
  • Handle: RePEc:kap:pubcho:v:41:y:1983:i:3:p:387-401
    DOI: 10.1007/BF00141071
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    References listed on IDEAS

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    1. Bohm, Peter, 1972. "Estimating demand for public goods: An experiment," European Economic Review, Elsevier, vol. 3(2), pages 111-130.
    2. Tideman, T Nicolaus & Tullock, Gordon, 1976. "A New and Superior Process for Making Social Choices," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1145-1159, December.
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    4. Bruce Scherr & Emerson Babb, 1975. "Pricing public goods," Public Choice, Springer, vol. 23(1), pages 35-48, September.
    5. Peter Bohm, 1972. "Estimating the demand for public goods: An experiment," Framed Field Experiments 00126, The Field Experiments Website.
    6. Smith, Vernon L, 1979. " An Experimental Comparison of Three Public Good Decision Mechanisms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 198-215.
    7. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    8. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    9. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
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    Cited by:

    1. Tatsuki Homma & Ryosuke Iba & Junyi Shen & Takuma Wakayama & Hirofumi Yamamura & Takehiko Yamato, 2022. "The pivotal mechanism versus the voluntary contribution mechanism: an experimental comparison," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(3), pages 429-505, April.
    2. R. Mark Isaac & Douglas A. Norton & Svetlana Pevnitskaya, 2019. "A new experimental mechanism to investigate polarized demands for public goods: the effects of censoring," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 585-609, September.
    3. Charles Laine, 1985. "Distribution of jointly owned private goods by the demand-revealing process: Applications to divorce settlements and estate administration," Public Choice, Springer, vol. 47(3), pages 437-457, January.
    4. Nicolaus Tideman & Florenz Plassmann, 2017. "Efficient collective decision-making, marginal cost pricing, and quadratic voting," Public Choice, Springer, vol. 172(1), pages 45-73, July.
    5. Francesco Feri & Anita Gantner & Wolfgang Höchtl & Rupert Sausgruber, 2013. "The pivotal mechanism revisited: some evidence on group manipulation," Experimental Economics, Springer;Economic Science Association, vol. 16(1), pages 23-51, March.
    6. , J. & ,, 2012. "Designing stable mechanisms for economic environments," Theoretical Economics, Econometric Society, vol. 7(3), September.
    7. Arthur Schram, 2016. "Gordon Tullock and experimental public choice," Constitutional Political Economy, Springer, vol. 27(2), pages 214-226, June.

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