PARETO EFFICIENCY AND WEIGHTED MAJORITY RULES

B-Tier
Journal: International Economic Review
Year: 2014
Volume: 55
Issue: 4
Pages: 1067-1088

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider the design of decision rules in an environment with two alternatives, independent private values and no monetary transfers. The utilitarian rule subject to incentive compatibility constraints is a weighted majority rule, where agents' weights correspond to expected gains given that their favorite alternative is chosen. It is shown that a rule is interim incentive efficient if and only if it is a weighted majority rule, and we characterize those weighted majority rules that are ex ante incentive efficient. We also discuss efficiency in the class of anonymous mechanisms and the stability of weighted majority rules.

Technical Details

RePEc Handle
repec:wly:iecrev:v:55:y:2014:i:4:p:1067-1088
Journal Field
General
Author Count
2
Added to Database
2026-01-24