IDEAS home Printed from https://ideas.repec.org/p/pen/papers/07-014.html
   My bibliography  Save this paper

Strategic Voting over Strategic Proposals, Second Version

Author

Listed:
  • Philip Bond

    (Finance Department, The Wharton School, University of Pennsylvania)

  • Hülya Eraslan

    (Finance Department, The Wharton School, University of Pennsylvania)

Abstract

Prior research on “strategic voting†has reached the conclusion that unanimity rule is uniquely bad: it results in destruction of information, and hence makes voters worse off. We show that this conclusion depends critically on the assumption that the issue being voted on is exogenous, i.e., independent of the voting rule used. We depart from the existing literature by endogenizing the proposal that is put to a vote, and establish that under many circumstances unanimity rule makes voters better off. Moreover, in some cases unanimity rule also makes the proposing individual better off even when he has diametrically opposing preferences. In this case, unanimity is the Pareto dominant voting rule. Voters prefer unanimity rule because it induces the proposing individual to make a more attractive proposal. The proposing individual prefers unanimity rule because the acceptance probabilities for moderate proposals are higher.

Suggested Citation

  • Philip Bond & Hülya Eraslan, 2004. "Strategic Voting over Strategic Proposals, Second Version," PIER Working Paper Archive 07-014, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 02 Jan 2007.
  • Handle: RePEc:pen:papers:07-014
    as

    Download full text from publisher

    File URL: https://economics.sas.upenn.edu/sites/default/files/filevault/working-papers/07-014.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vincent, Daniel R., 1989. "Bargaining with common values," Journal of Economic Theory, Elsevier, vol. 48(1), pages 47-62, June.
    2. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
    3. Bernard Caillaud & Jean Tirole, 2007. "Consensus Building: How to Persuade a Group," American Economic Review, American Economic Association, vol. 97(5), pages 1877-1900, December.
    4. Timothy Feddersen & Wolfgang Pesendorfer, 1997. "Voting Behavior and Information Aggregation in Elections with Private Information," Econometrica, Econometric Society, vol. 65(5), pages 1029-1058, September.
    5. Robert Evans, 1989. "Sequential Bargaining with Correlated Values," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 499-510.
    6. Raymond Deneckere & Meng-Yu Liang, 2006. "Bargaining with Interdependent Values," Econometrica, Econometric Society, vol. 74(5), pages 1309-1364, September.
    7. Cho, Seok-ju & Duggan, John, 2003. "Uniqueness of stationary equilibria in a one-dimensional model of bargaining," Journal of Economic Theory, Elsevier, vol. 113(1), pages 118-130, November.
    8. Samuelson, William F, 1984. "Bargaining under Asymmetric Information," Econometrica, Econometric Society, vol. 52(4), pages 995-1005, July.
    9. Feddersen, Timothy & Pesendorfer, Wolfgang, 1998. "Convicting the Innocent: The Inferiority of Unanimous Jury Verdicts under Strategic Voting," American Political Science Review, Cambridge University Press, vol. 92(1), pages 23-35, March.
    10. Suchan Chae & Hervé Moulin, 2010. "Bargaining among groups: an axiomatic viewpoint," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 71-88, March.
    11. Manzini, Paola & Mariotti, Marco, 2005. "Alliances and negotiations," Journal of Economic Theory, Elsevier, vol. 121(1), pages 128-141, March.
    12. Feddersen, Timothy J & Pesendorfer, Wolfgang, 1996. "The Swing Voter's Curse," American Economic Review, American Economic Association, vol. 86(3), pages 408-424, June.
    13. Alexander Elbittar & Andrei Gomberg & Laura Sour, 2004. "Group Decision-Making in Ultimatum Bargaining: An Experimental Study," Levine's Working Paper Archive 122247000000000267, David K. Levine.
    14. Nicola Persico, 2004. "Committee Design with Endogenous Information," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 165-191.
    15. Austen-Smith, David & Banks, Jeffrey S., 1996. "Information Aggregation, Rationality, and the Condorcet Jury Theorem," American Political Science Review, Cambridge University Press, vol. 90(1), pages 34-45, March.
    16. Kalyan Chatterjee & Larry Samuelson, 1987. "Bargaining with Two-sided Incomplete Information: An Infinite Horizon Model with Alternating Offers," Review of Economic Studies, Oxford University Press, vol. 54(2), pages 175-192.
    17. Duggan, John & Martinelli, Cesar, 2001. "A Bayesian Model of Voting in Juries," Games and Economic Behavior, Elsevier, vol. 37(2), pages 259-294, November.
    18. Cardona, Daniel & Ponsati, Clara, 2007. "Bargaining one-dimensional social choices," Journal of Economic Theory, Elsevier, vol. 137(1), pages 627-651, November.
    19. Kennan, John & Wilson, Robert, 1993. "Bargaining with Private Information," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 45-104, March.
    20. McLennan, Andrew, 1998. "Consequences of the Condorcet Jury Theorem for Beneficial Information Aggregation by Rational Agents," American Political Science Review, Cambridge University Press, vol. 92(2), pages 413-418, June.
    21. Doraszelski Ulrich & Gerardi Dino & Squintani Francesco, 2003. "Communication and Voting with Double-Sided Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-41, August.
    22. Timothy Feddersen & Wolfgang Pesendorfer, 1996. "Convicting the Innocent: The Inferiority of Unanimous Jury Verdicts," Discussion Papers 1170, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    23. Urs Schweizer, 1989. "Litigation and Settlement under Two-Sided Incomplete Information," Review of Economic Studies, Oxford University Press, vol. 56(2), pages 163-177.
    24. Manelli, Alejandro M, 1996. "Cheap Talk and Sequential Equilibria in Signaling Games," Econometrica, Econometric Society, vol. 64(4), pages 917-942, July.
    25. Gerardi, Dino & Yariv, Leeat, 2007. "Deliberative voting," Journal of Economic Theory, Elsevier, vol. 134(1), pages 317-338, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henry, Emeric, 2008. "The informational role of supermajorities," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2225-2239, October.
    2. Matthias Messner & Mattias K. Polborn, 2008. "The Option to Wait in Collective Decisions," Working Papers 338, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philip Bond & Hülya Eraslan, 2010. "Strategic Voting over Strategic Proposals," Review of Economic Studies, Oxford University Press, vol. 77(2), pages 459-490.
    2. Li Hao & Wing Suen, 2009. "Viewpoint: Decision-making in committees," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 359-392, May.
    3. Jerome Mathis, 2006. "Deliberation with Partially Verifiable Information," THEMA Working Papers 2006-03, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Sourav Bhattacharya, 2006. "Preference Monotonicity and Information Aggregation in Elections," Working Paper 325, Department of Economics, University of Pittsburgh, revised Dec 2008.
    5. Dino Gerardi & Leeat Yariv, 2003. "Committee Design in the Presence of Communication," Cowles Foundation Discussion Papers 1411, Cowles Foundation for Research in Economics, Yale University.
    6. Bouton, Laurent & Llorente-Saguer, Aniol & Malherbe, Frédéric, 2017. "Unanimous rules in the laboratory," Games and Economic Behavior, Elsevier, vol. 102(C), pages 179-198.
    7. Laurent Bouto & Aniol Llorente-Saguer & Fédéric Malherbe, 2014. "Get Rid of Unanimity: The Superiority of Majority Rule with Veto Power," Working Papers 722, Queen Mary University of London, School of Economics and Finance.
    8. Bouton, Laurent & Castanheira, Micael & Llorente-Saguer, Aniol, 2016. "Divided majority and information aggregation: Theory and experiment," Journal of Public Economics, Elsevier, vol. 134(C), pages 114-128.
    9. Elisabeth Schulte, 2010. "Information aggregation and preference heterogeneity in committees," Theory and Decision, Springer, vol. 69(1), pages 97-118, July.
    10. Yun Wang, 2015. "Bayesian Persuasion with Multiple Receivers," Working Papers 2015-03-24, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    11. Ruth Ben-Yashar, 2006. "Information is important to Condorcet jurors," Public Choice, Springer, vol. 127(3), pages 305-319, June.
    12. Makoto Hanazono & Yasutora Watanabe, 2018. "Equity bargaining with common value," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 251-292, March.
    13. Gerling, Kerstin & Gruner, Hans Peter & Kiel, Alexandra & Schulte, Elisabeth, 2005. "Information acquisition and decision making in committees: A survey," European Journal of Political Economy, Elsevier, vol. 21(3), pages 563-597, September.
    14. Tajika, Tomoya, 2022. "Voting on tricky questions," Games and Economic Behavior, Elsevier, vol. 132(C), pages 380-389.
    15. Paolo Balduzzi & Clara Graziano & Annalisa Luporini, 2014. "Voting in small committees," Journal of Economics, Springer, vol. 111(1), pages 69-95, February.
    16. Chan, Jimmy & Gupta, Seher & Li, Fei & Wang, Yun, 2019. "Pivotal persuasion," Journal of Economic Theory, Elsevier, vol. 180(C), pages 178-202.
      • Jimmy Chan & Seher Gupta & Fei Li & Yun Wang, 2018. "Pivotal Persuasion," Working Papers 2018-11-03, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    17. Gratton, Gabriele, 2014. "Pandering and electoral competition," Games and Economic Behavior, Elsevier, vol. 84(C), pages 163-179.
    18. Gerardi, Dino & Yariv, Leeat, 2007. "Deliberative voting," Journal of Economic Theory, Elsevier, vol. 134(1), pages 317-338, May.
    19. Gershkov, Alex & Szentes, Balázs, 2009. "Optimal voting schemes with costly information acquisition," Journal of Economic Theory, Elsevier, vol. 144(1), pages 36-68, January.
    20. Gerardi, Dino & Yariv, Leeat, 2008. "Information acquisition in committees," Games and Economic Behavior, Elsevier, vol. 62(2), pages 436-459, March.

    More about this item

    Keywords

    Strategic voting; agenda setting; multilateral bargaining;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pen:papers:07-014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Administrator (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.