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Exploring Voting Anomalies Using a Demand Revealing Random Price Voting Mechanism

  • Messer, Kent D.
  • Poe, Gregory L.
  • Rondeau, Daniel
  • Schulze, William D.
  • Vossler, Christian A.

Recent papers show that in group decisions individuals have social preferences for efficiency and equity. However, the effect of social preferences on voting, the predominant funding mechanism for public goods, has not been thoroughly examined. This study investigates whether voting decisions are affected by the distribution of net benefits associated with a proposed public program using a new Random Price Voting Mechanism (RPVM). Theoretical and econometric analysis of experimental results presented in the paper suggest that observed differences from selfish voting are caused by a concern for social efficiency, and that voting may be more efficient than previously thought.

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File URL: http://purl.umn.edu/127062
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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127062.

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Date of creation: 2006
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Handle: RePEc:ags:cudawp:127062
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  1. Plott, Charles R & Levine, Michael E, 1978. "A Model of Agenda Influence on Committee Decisions," American Economic Review, American Economic Association, vol. 68(1), pages 146-60, March.
  2. Dirk Engelmann & Martin Strobel, 2006. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments: Reply," American Economic Review, American Economic Association, vol. 96(5), pages 1918-1923, December.
  3. Dirk Engelmann & Martin Strobel, 2007. "Preferences over Income Distributions," Public Finance Review, , vol. 35(2), pages 285-310, March.
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