Article ID Journal Published Year Pages File Type
7359860 Journal of Economic Theory 2014 13 Pages PDF
Abstract
I consider a repeated divide-the-dollar voting model with rejections leading to the implementation of the previous period's allocation (see Kalandrakis [14]). I show that if proposals can be non-exhaustive, then equal division can be achieved as an absorbing steady state from any initial allocation given a large enough discount factor as a part of a Markov Perfect equilibrium. This result is robust to changes in voting thresholds and persistence in proposal power outside of unanimity or total persistence.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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