Article ID Journal Published Year Pages File Type
5071346 Games and Economic Behavior 2017 37 Pages PDF
Abstract
Simple majority does not reflect the intensity of voters' preferences. This paper presents an efficient collective choice mechanism with two alternatives when the designer may use non-transferable punishments to persuade agents to reveal their private information. The designer faces a dilemma - a punishment may induce a more correct choice, but its cost is socially wasteful. The efficient mechanism is a weighted majority. Weight of each individual is known ex ante and no punishments are applied if preferences are relatively homogeneous. Eliciting types through punishments in order to construct type-specific weights should occur if preference intensity is relatively heterogeneous.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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