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DELEGATION OR VOTING
Category: Economic Theory
Voting I Monday 26th August 2002, 09:30 - 11:00, Room: 5.6
Session Chair(s):
Joćo Amaro de Matos, Universidade Nova de Lisboa, PORTUGAL
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Abstract:
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Collective decision procedures should balance the incentives to acquire information and their capacity to aggregate private information. We compare a delegation structure with two voting procedures. Delegation makes one's acceptance decision pivotal by definition. The decisiveness of one's vote in a voting procedure depends on the other agent's vote. This determines the decision to acquire information. The rational choice foundation of Condorcet's Jury Theorem in case of exogenous information relied on mixed (acceptance) strategies. Endogenizing information acquisition as we do reveals mixed (acceptance) strategies to be detrimental for welfare as they lead to indifference between buying and not buying information
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Find this file in the \Papers\206\ folder of this CD-ROM.
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