Showing 1 - 10 of 37
In this paper we propose minority voting as a scheme that can partially protect individuals from the risk of repeated …-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 keep the voting right in the second …
Persistent link: https://www.econbiz.de/10010264290
Politicians may pander to public opinion and may renounce undertaking beneficial long-term projects. To alleviate this problem, we introduce a triple mechanism involving political information markets, reelection threshold contracts, and democratic elections. An information market is used to...
Persistent link: https://www.econbiz.de/10010274852
private information truthfully before voting takes place. Depending on the distance between two feasible public good levels …, the optimal mechanism involves either one or two voting rounds. We show that procedural efficiency cannot be achieved by … communication among all citizens prior to voting. Finally, we outline several applications of the mechanism. …
Persistent link: https://www.econbiz.de/10011451437
In the third decade of the 21st century, digitization, global events, challenges from authoritarian states, and difficulties of particular democracies to function properly confront democracy with a new series of challenges and opportunities that will force it to reinvent itself. The last decades...
Persistent link: https://www.econbiz.de/10014290044
Persistent link: https://www.econbiz.de/10009379488
We develop a model that combines competitive exchange of private commodities across endogenously formed groups with public good provision and global collective decisions. There is a tension between local and global collective decisions. In particular, we show that group formation and collective...
Persistent link: https://www.econbiz.de/10010398661
This paper proposes a pair-wise approach to testing for output convergence that considers all N(N-1)/2 possible pairs of log per capita output gaps across N economies. A general probabilistic definition of output convergence is also proposed, which suggests that all such output gap pairs must be...
Persistent link: https://www.econbiz.de/10010276156
We We integrate individual power in groups into general equilibrium models. The relationship between group formation, resource allocation, and the power of specific individuals or particular sociological groups is investigated. We introduce, via an illustrative example, three appealing concepts...
Persistent link: https://www.econbiz.de/10010264415
We present a model of elections in which interest group donations allow candidates to shift policy positions. We show that if donations were prohibited, then a unique equilibrium regarding the platform choices of candidates would exist. Our game with financing of political campaigns exhibits two...
Persistent link: https://www.econbiz.de/10010266018
In this paper we examine the potential of democratic constitutions for the provision of divisible public goods in a large economy. Our main insights are as follows: When aggregate shocks are absent, the combination of the following rules yields first-best allocations: a supermajority rule, equal...
Persistent link: https://www.econbiz.de/10010266097