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Minority Voting and Long-term Decisions

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Abstract

In this paper we propose minority voting as a scheme that can partially protect individuals from the risk of repeated exploitation. We consider a committee that meets twice to decide about projects where the first-period project may have a long-lasting impact. In the first period a simple open majority voting scheme takes place. Voting splits the committee into three groups: voting winners, voting losers, and absentees. Under minority voting only voting losers keep the voting right in the second period. We show that as soon as absolute risk aversion exceeds a threshold value minority voting is superior to repeated application of the simple majority rule.

Suggested Citation

  • Theresa Fahrenberger & Hans Gersbach, 2007. "Minority Voting and Long-term Decisions," CER-ETH Economics working paper series 07/70, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  • Handle: RePEc:eth:wpswif:07-70
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    Cited by:

    1. Potrafke, Niklas, 2013. "Minority positions in the German Council of Economic Experts: A political economic analysis," European Journal of Political Economy, Elsevier, vol. 31(C), pages 180-187.
    2. Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
    3. Gersbach, Hans, 2009. "Minority voting and public project provision," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 3, pages 1-40.
    4. Gersbach, Hans, 2017. "Flexible Majority Rules in democracyville: A guided tour," Mathematical Social Sciences, Elsevier, vol. 85(C), pages 37-43.
    5. Theresa Fahrenberger, 2009. "Short-term Deviations from Simple Majority Voting," CER-ETH Economics working paper series 09/115, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    6. Fahrenberger, Theresa C. & Gersbach, Hans, 2012. "Preferences for harmony and minority voting," Mathematical Social Sciences, Elsevier, vol. 63(1), pages 1-13.
    7. Hans Gersbach & Kamali Wickramage, 2015. "Balanced Voting," CER-ETH Economics working paper series 15/209, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

    More about this item

    Keywords

    voting; minority; durable decision; risk aversion; tyranny of majority rules;

    JEL classification:

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

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