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Moral cost, commitment, and committee size
[Moralische Kosten, Selbstbindung und die Größe von Komitees]

Author

Listed:
  • Huck, Steffen
  • Konrad, Kai A.

Abstract

Consider a committee that in the past has made a promise not to confiscate the profits from a foreign investor. After the investment has taken place, there is a material benefit if the committee decides to default on the earlier promise. But there are also some small moral costs for those who vote in favor of default. We show that in such situations small committees are more likely to default than large committees. Thus, constituencies can decide about degrees of commitment by choosing committee sizes appropriately. Experimental data confirms our predictions.

Suggested Citation

  • Huck, Steffen & Konrad, Kai A., 2003. "Moral cost, commitment, and committee size
    [Moralische Kosten, Selbstbindung und die Größe von Komitees]
    ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2003-31, Social Science Research Center Berlin (WZB).
  • Handle: RePEc:zbw:wzbmpg:spii200331
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    File URL: https://www.econstor.eu/bitstream/10419/51085/1/385747721.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Konrad, Kai A. & Morath, Florian, 2010. "Social mobility and redistributive taxation," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-15, Social Science Research Center Berlin (WZB).
    2. Rothenhäusler, Dominik & Schweizer, Nikolaus & Szech, Nora, 2016. "Guilt in voting and public good games," Working Paper Series in Economics 99, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    3. Rothenhäusler, Dominik & Schweizer, Nikolaus & Szech, Nora, 2013. "Institutions, shared guilt, and moral transgression," Working Paper Series in Economics 47, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    4. Dominik Rothenhaüsler & Nikolaus Schweizer & Nora Szech, 2016. "Guilt in Voting and Public Good Games," Working Papers 2016-026, Human Capital and Economic Opportunity Working Group.
    5. repec:eee:gamebe:v:104:y:2017:i:c:p:430-443 is not listed on IDEAS
    6. repec:eee:eecrev:v:98:y:2017:i:c:p:341-353 is not listed on IDEAS
    7. Rothenhäusler, Dominik & Schweizer, Nikolaus & Szech, Nora, 2013. "Institutions, shared guilt, and moral transgression," Discussion Papers, Research Unit: Economics of Change SP II 2013-305, Social Science Research Center Berlin (WZB).
    8. repec:eee:eecrev:v:101:y:2018:i:c:p:664-681 is not listed on IDEAS
    9. Szech, Nora & Rothenhäusler, Dominik & Schweizer, Nikolaus, 2014. "Institutions, Shared Guilt, and Moral Transgression," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100518, Verein für Socialpolitik / German Economic Association.
    10. Dominik Rothenhäusler & Nikolaus Schweizer & Nora Szech, 2015. "Institutions, Shared Guilt, and Moral Transgression," CESifo Working Paper Series 5525, CESifo Group Munich.
    11. Konrad, Kai A., 2017. "Large investors, regulatory taking and investor-state dispute settlement," European Economic Review, Elsevier, vol. 98(C), pages 341-353.
    12. repec:rss:jnljms:v6i1p3 is not listed on IDEAS

    More about this item

    Keywords

    coordination; commitment; democracy; voting;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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