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two alternatives (e.g., Myerson (1998)). We show that there always exists an efficient equilibrium under the simple … alternatives and the condition under which they exist. There is only one type of inefficient equilibrium with two alternatives. In … this equilibrium, voters vote unresponsively because they all vote for the same alternative. Under the same condition, the …
Persistent link: https://www.econbiz.de/10009127595
For a quarter century, a top priority in transportation economic theory has been to develop models of rush-hour traffic dynamics that incorporate traffic jams (hypercongestion). The difficulty has been that "proper" models result in mathematical intractabilty, while none of the proposed...
Persistent link: https://www.econbiz.de/10011305426
Ten Central European countries became members of the European Union in the years 2004 - 2007. They constitute 20% of the EU's total population; and even though their economic output is much lower, it rises dynamically. New members' impact on the EU policies has nevertheless been limited. This is...
Persistent link: https://www.econbiz.de/10003790698
equilibrium policy is smaller, because their bargaining power is reduced compared to a single ballot election. The predictions on …
Persistent link: https://www.econbiz.de/10003824705
Persistent link: https://www.econbiz.de/10003377309
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/10003937264
Persistent link: https://www.econbiz.de/10003612627
Persistent link: https://www.econbiz.de/10003623836
Interest groups are introduced in a spatial model of electoral competition between two political parties. We show that the presence of these interest groups increases the winning set, which is the set of policy platforms for the challenger that will defeat the incumbent. Therefore interest...
Persistent link: https://www.econbiz.de/10003301391
This paper studies the assignment of decision makers to two committees that make decisions by a simple majority rule. There is an even number of decision makers at each of various skill levels and each committee has an odd number of members. Surprisingly, even with the symmetric assumptions in...
Persistent link: https://www.econbiz.de/10009162101