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Information markets, elections and contracts

Gersbach, Hans; Müller, Markus - 2011

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/10009009663

Flexible majority rules

Erlenmaier, Ulrich; Gersbach, Hans - 2001

In this paper we introduce flexible majority decision rules where the size of the majority depends on the proposal made by the agenda setter. Flexible majority rules can mitigate the disadvantages of democracies in the provision of public projects. In many cases, the combination of the...

Persistent link: https://www.econbiz.de/10011398428

Competitive markets, collective decisions and group formation

Gersbach, Hans; Haller, Hans - 2003

We consider a general equilibrium model where groups operating in a competitive market environment can have several members and make efficient collective consumption decisions. Individuals have the option to leave the group and make it on their own or join another group. We study the effect of...

Persistent link: https://www.econbiz.de/10011507930

When inefficiency begets efficiency

Gersbach, Hans; Haller, Hans - 2004

Collective consumption decisions taken by the members of a household may prove inefficient. The impact on market performance depends on whether household inefficiencies are caused by inefficient net trades with the market or by inefficient distribution of resources within households. Inefficient...

Persistent link: https://www.econbiz.de/10011399478

Households, markets and public choice

Gersbach, Hans; Haller, Hans - 2014 - This Version: August 2014

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/10010399075

Cake division by majority decision

Gersbach, Hans (contributor); Pachl, Bernhard (contributor) - 2006

Persistent link: https://www.econbiz.de/10003457682

General equilibrium with multi-member households and production

Gersbach, Hans; Haller, Hans - 2011

We consider firms and multi-member households operating in a competitive market environment. Households are endowed with resources (commodity bundles) and shares of firm ownership. Household members are characterized by individual preferences, possibly with intra-household consumption...

Persistent link: https://www.econbiz.de/10009383485

Bargaining power and equilibrium consumption

Gersbach, Hans (contributor); Haller, Hans (contributor) - 2005

We examine how a shift of bargaining power within households operating in a competitive market environment affects equilibrium allocation and welfare. If price effects are sufficiently small, then typically an individual benefits from an increase of bargaining power, necessarily to the detriment...

Persistent link: https://www.econbiz.de/10002757324

Self-financing environmental mechanisms

Breitscheidel, Jörg (contributor); … - 2005

We explore the design of self-financing tax/subsidy mechanisms to solve hold-up problems in environmental regulation. Under Cournot competition, announcing the subsidy rate seems to be preferable to announcing the tax rate. Moreover, for constant marginal damage the hold-up problem can always be...

Persistent link: https://www.econbiz.de/10003120276

Information aggregation in democratic mechanisms

Britz, Volker; Gersbach, Hans - 2016 - This version: January 22, 2016

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/10011444451