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Unpublished Paper
Time-Consistent Majority Rules with Interdependent Valuations
(2012)
  • Huseyin Yildirim, Duke University
Abstract
This paper studies collective decision-making with interdependent valuations, where, unlike the extant literature, the committee cannot commit to a majority rule, necessitating it to be ex post optimal or “time-consistent”. We find that (1) a majority rule is time-consistent if and only if the expected number of affirmative votes it generates is approximately the rule itself; (2) the preference interdependence exacerbates the commitment problem by creating incentives for strategic (pivotal) voting and in turn expanding the set of time-consistent rules; in particular, any majority rule, including the unanimity, becomes time-consistent under pure common values; and (3) as the committee size grows without bound, the commitment problem disappears owing to the dilution of incentives for strategic voting.
Disciplines
Publication Date
September 7, 2012
Citation Information
Huseyin Yildirim. "Time-Consistent Majority Rules with Interdependent Valuations" (2012)
Available at: http://works.bepress.com/huseyin_yildirim/19/