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Risk Aversion, Over-Confidence and Private Information as determinants of Majority Thresholds

Listed author(s):
  • Giuseppe Attanasi
  • Luca CORAZZINI
  • Nikolaos GEORGANTZIS
  • Francesco PASSARELLI

We present and experimentally test a theoretical model of majority threshold determination as a function of voters' risk preferences. The experimental results confirm the theoretical prediction of a positive correlation between a voter's risk aversion and the corresponding preferred majority threshold. Furthermore, the experimental results show that a voter's optimal majority threshold negatively relates to the voter's confidence about how others will vote. Moreover, in a treatment in which individuals receive a private signal about others' voting behavior, the private signal tends to replace confidence.

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File URL: http://www2.toulouse.inra.fr/lerna/travaux/cahiers2009/09.26.302.pdf
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Paper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 09.26.302.

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Date of creation: Dec 2009
Handle: RePEc:ler:wpaper:09.26.302
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