Enlargement and the Balance of Power: An Experimental Study
Many important decisions are taken according to weighted majority rule. Power indices predict that enlargement of the voting body may affect the balance of power between the original members even if their number of votes and the decision rule remain constant. Some of the existing voters may actually gain, a phenomenon known as the paradox of new members. We test for this effect using laboratory experiments. Participants propose and vote on how to divide a budget according to weighted majority voting rules, and we measure the voting power of a player by his average payoff in the experiment. By comparing voting power across voting bodies of varying size, we find empirical support for the paradox of new members. Our results also allow an assessment of the predictive performance of standard power indices.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Laruelle, Annick & Valenciano, Federico, 2007. "Bargaining in committees as an extension of Nash's bargaining theory," Journal of Economic Theory, Elsevier, vol. 132(1), pages 291-305, January.
- Roth, Alvin E., 1977. "Utility functions for simple games," Journal of Economic Theory, Elsevier, vol. 16(2), pages 481-489, December.
- Dreyer, Jacob S. & Schotter, Andrew, 1978.
"Power Relationships in the International Monetary Fund: The Consequences of Quota Changes,"
78-06, C.V. Starr Center for Applied Economics, New York University.
- Dreyer, Jacob S & Schotter, Andrew, 1980. "Power Relationships in the International Monetary Fund: The Consequences of Quota Changes," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 97-106, February.
- Gary E. Bolton & Kalyan Chatterjee & Kathleen L. McGinn, 2003. "How Communication Links Influence Coalition Bargaining: A Laboratory Investigation," Management Science, INFORMS, vol. 49(5), pages 583-598, May.
- Montero, Maria, 2006. "Noncooperative foundations of the nucleolus in majority games," Games and Economic Behavior, Elsevier, vol. 54(2), pages 380-397, February.
- Gaechter,S. & Riedl,A., 2002.
"Moral property rights in bargaining,"
Center for Mathematical Economics Working Papers
330, Center for Mathematical Economics, Bielefeld University.
- Simon Gächter & Arno Riedl, 2006. "Dividing Justly in Bargaining Problems with Claims," Social Choice and Welfare, Springer, vol. 27(3), pages 571-594, December.
- J. Keith Murnighan & Alvin E. Roth, 1977. "The Effects of Communication and Information Availability in an Experimental Study of a Three-Person Game," Management Science, INFORMS, vol. 23(12), pages 1336-1348, August.
- Moshé Machover & Dan S. Felsenthal, 2001. "The Treaty of Nice and qualified majority voting," Social Choice and Welfare, Springer, vol. 18(3), pages 431-464.
- Frechette, Guillaume R. & Kagel, John H. & Morelli, Massimo, 2005. "Gamson's Law versus non-cooperative bargaining theory," Games and Economic Behavior, Elsevier, vol. 51(2), pages 365-390, May.
- Simon Gächter & Arno Riedl, 2005. "Moral Property Rights in Bargaining with Infeasible Claims," Management Science, INFORMS, vol. 51(2), pages 249-263, February.
- Roth, Alvin E & Murnighan, J Keith, 1982.
"The Role of Information in Bargaining: An Experimental Study,"
Econometric Society, vol. 50(5), pages 1123-42, September.
- Alvin E Roth & J K Murnighan, 1997. "The rule of information in bargaining: an experimental study," Levine's Working Paper Archive 1631, David K. Levine.
- Okada, Akira & Riedl, Arno, 2005.
"Inefficiency and social exclusion in a coalition formation game: experimental evidence,"
Games and Economic Behavior,
Elsevier, vol. 50(2), pages 278-311, February.
- Akira Okada & Arno Riedl, 1999. "Inefficiency and Social Exclusion in a Coalition Formation Game: Experimental Evidence," Tinbergen Institute Discussion Papers 99-044/1, Tinbergen Institute.
- Guillaume R. Frechette & John H. Kagel & Steven Lehrer, 2000. "Bargaining in Legislatures: An Experimental Investigation of Open versus Closed Amendment Rules," Econometric Society World Congress 2000 Contributed Papers 1515, Econometric Society.
- Dan S. Felsenthal & Moshé Machover, 1998. "The Measurement of Voting Power," Books, Edward Elgar, number 1489, December.
- Roth, Alvin E & Murnighan, J Keith & Schoumaker, Francoise, 1988. "The Deadline Effect in Bargaining: Some Experimental Evidence," American Economic Review, American Economic Association, vol. 78(4), pages 806-23, September.
- Roth, Alvin E, 1977. "The Shapley Value as a von Neumann-Morgenstern Utility," Econometrica, Econometric Society, vol. 45(3), pages 657-64, April.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpex:0507001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.