Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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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

Presenter(s): Visser, Bauke

Co-Author(s): Swank, Otto

Keyword(s): Delegation, Information Acquisition, Jury Theorem, Voting

JEL(s): D72, D82

Abstract:

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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Paper Reference Number: 206

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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