Minority voting and long-term decisions

B-Tier
Journal: Games and Economic Behavior
Year: 2010
Volume: 69
Issue: 2
Pages: 329-345

Authors (2)

Fahrenberger, Theresa (not in RePEc) Gersbach, Hans (Eidgenössische Technische Hoch...)

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

In this paper we propose minority voting as a scheme that can partially protect individuals from the risk of repeated exploitation. We consider a committee that meets twice to decide about projects including a first-period project that may have long-lasting impact. In the first period, a simple open majority voting scheme takes place. Voting splits the committee into three groups: voting winners, voting losers, and absentees. Under minority voting, only voting losers retain their voting rights in the second period. We show that as soon as absolute risk aversion exceeds a threshold value, minority voting is superior to repeated application of the simple majority rule.

Technical Details

RePEc Handle
repec:eee:gamebe:v:69:y:2010:i:2:p:329-345
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25