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On Robust Constitution Design

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  • Emmanuelle Auriol

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  • Robert Gary-Bobo

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Abstract

We study a class of representation mechanisms, based on reports made by a random subset of agents, called representatives, in a collective choice problem with quasi-linear utilities. We do not assume the existence of a common prior probability describing the distribution of preference types. In addition, there is no benevolent planner. Decisions will be carried out by an individual who cannot be assumed impartial, a self-interested executive. These assumptions impose new constraints on Mechanism Design. A robust mechanism is defined as maximizing expected welfare under a vague prior probability distribution, and over a set of mechanisms which is at the same time immune from opportunistic manipulations by the executive, and compatible with truthful revelation of preferences by representatives. Robust mechanisms are characterized and their existence is shown. Sampling Groves mechanisms are shown to be robust. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Emmanuelle Auriol & Robert Gary-Bobo, 2007. "On Robust Constitution Design," Theory and Decision, Springer, vol. 62(3), pages 241-279, May.
  • Handle: RePEc:kap:theord:v:62:y:2007:i:3:p:241-279 DOI: 10.1007/s11238-006-9017-z
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    References listed on IDEAS

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    1. Gordon Tullock, 1977. "Practical problems and practical solutions," Public Choice, Springer, vol. 29(2), pages 27-35, March.
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    7. Emmanuelle Auriol & Robert Gary-Bobo, 2012. "On the optimal number of representatives," Public Choice, Springer, vol. 153(3), pages 419-445, December.
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    10. Dirk Bergemann & Stephen Morris, 2005. "Robust Mechanism Design," Econometrica, Econometric Society, vol. 73(6), pages 1771-1813, November.
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    13. Makowski, Louis & Ostroy, Joseph M., 1987. "Vickrey-Clarke-Groves mechanisms and perfect competition," Journal of Economic Theory, Elsevier, vol. 42(2), pages 244-261, August.
    14. Emmanuelle Auriol & Robert Gary-Bobo, 2007. "On Robust Constitution Design," Theory and Decision, Springer, pages 241-279.
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    17. Dennis Mueller & Robert Tollison & Thomas Willett, 1972. "Representative democracy via random selection," Public Choice, Springer, vol. 12(1), pages 57-68, March.
    18. Moulin, H., 1986. "Characterizations of the pivotal mechanism," Journal of Public Economics, Elsevier, vol. 31(1), pages 53-78, October.
    19. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
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    Citations

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    Cited by:

    1. Emmanuelle Auriol & Robert Gary-Bobo, 2012. "On the optimal number of representatives," Public Choice, Springer, vol. 153(3), pages 419-445, December.
    2. Emmanuelle Auriol & Robert Gary-Bobo, 2007. "On Robust Constitution Design," Theory and Decision, Springer, pages 241-279.
    3. Bierbrauer, Felix & Sahm, Marco, 2006. "Informative Voting and the Samuelson Rule," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 159, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    4. Emmanuelle Auriol & Robert Gary-Bobo, 2007. "On Robust Constitution Design," Theory and Decision, Springer, pages 241-279.
    5. Felix Bierbrauer & Marco Sahm, 2006. "Informative Voting and the Samuelson Rule," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2006_18, Max Planck Institute for Research on Collective Goods.

    More about this item

    Keywords

    collective choice; incomplete information; mechanism design; representative democracy; D7; D8; H0;

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • H00 - Public Economics - - General - - - General

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