IDEAS home Printed from https://ideas.repec.org/p/ucy/cypeua/03-2017.html
   My bibliography  Save this paper

Strategic vote trading under complete information

Author

Listed:
  • Dimitrios Xefteris
  • Nicholas Ziros

Abstract

We study two-party elections considering that: a) prior to the voting stage voters are free to trade votes for money according to the rules of the Shapley-Shubik strategic market games; and b) voters' preferences -both ordinal rankings and cardinal intensities- are public information. While under plurality rule no trade occurs, under a power-sharing system (voters' utilities are proportionally increasing in the vote share of their favorite party) full trade is always an equilibrium (two voters -the strongest supporter of each party- buy the votes of all others). Notably, this equilibrium implements proportional justice with respect to the two buyers: the ratio of the parties' vote shares is equal to the ratio of the preference intensities of the two most opposing voters.

Suggested Citation

  • Dimitrios Xefteris & Nicholas Ziros, 2017. "Strategic vote trading under complete information," University of Cyprus Working Papers in Economics 03-2017, University of Cyprus Department of Economics.
  • Handle: RePEc:ucy:cypeua:03-2017
    as

    Download full text from publisher

    File URL: https://papers.econ.ucy.ac.cy/RePEc/papers/03-17.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Riker, William H. & Brams, Steven J., 1973. "The Paradox of Vote Trading," American Political Science Review, Cambridge University Press, vol. 67(4), pages 1235-1247, December.
    2. Casella, Alessandra & Turban, Sébastien, 2014. "Democracy undone. Systematic minority advantage in competitive vote markets," Games and Economic Behavior, Elsevier, vol. 88(C), pages 47-70.
    3. Humberto Llavador, 2006. "Electoral Platforms, Implemented Policies, and Abstention," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 27(1), pages 55-81, August.
    4. Alessandra Casella & Aniol Llorente-Saguer & Thomas R. Palfrey, 2012. "Competitive Equilibrium in Markets for Votes," Journal of Political Economy, University of Chicago Press, vol. 120(4), pages 593-658.
    5. Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 23-38.
    6. Dimitrios Xefteris & Nicholas Ziros, 2017. "Strategic Vote Trading in Power Sharing Systems," American Economic Journal: Microeconomics, American Economic Association, vol. 9(2), pages 76-94, May.
    7. Alesina, Alberto & Rosenthal, Howard, 2000. "Polarized platforms and moderate policies with checks and balances," Journal of Public Economics, Elsevier, vol. 75(1), pages 1-20, January.
    8. Shapley, Lloyd S & Shubik, Martin, 1977. "Trade Using One Commodity as a Means of Payment," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 937-968, October.
    9. Goeree, Jacob K. & Zhang, Jingjing, 2017. "One man, one bid," Games and Economic Behavior, Elsevier, vol. 101(C), pages 151-171.
    10. Núñez, Matías & Xefteris, Dimitrios, 2017. "Implementation via approval mechanisms," Journal of Economic Theory, Elsevier, vol. 170(C), pages 169-181.
    11. M. Iaryczower, & Andrea Mattozzi, 2013. "On the Nature of Competition in Alternative Electoral Systems," Levine's Bibliography 786969000000001681, UCLA Department of Economics.
    12. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
    13. del Mercato, Elena L., 2006. "Existence of competitive equilibria with externalities: A differential viewpoint," Journal of Mathematical Economics, Elsevier, vol. 42(4-5), pages 525-543, August.
    14. Konstantinos Matakos & Orestis Troumpounis & Dimitrios Xefteris, 2016. "Electoral Rule Disproportionality and Platform Polarization," American Journal of Political Science, John Wiley & Sons, vol. 60(4), pages 1026-1043, October.
    15. Helios Herrera & Massimo Morelli & Thomas Palfrey, 2014. "Turnout and Power Sharing," Economic Journal, Royal Economic Society, vol. 124(574), pages 131-162, February.
    16. Philipson, Tomas J & Snyder, James M, Jr, 1996. "Equilibrium and Efficiency in an Organized Vote Market," Public Choice, Springer, vol. 89(3-4), pages 245-265, December.
    17. Austen-Smith, David & Banks, Jeffrey, 1988. "Elections, Coalitions, and Legislative Outcomes," American Political Science Review, Cambridge University Press, vol. 82(2), pages 405-422, June.
    18. Nicolas Sahuguet & Nicola Persico, 2006. "Campaign spending regulation in a model of redistributive politics," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(1), pages 95-124, May.
    19. Alejandro Saporiti, 2014. "Power sharing and electoral equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 705-729, April.
    20. Segal, Uzi, 2006. "Fair Bias," Economics and Philosophy, Cambridge University Press, vol. 22(2), pages 213-229, July.
    21. Casella, Alessandra & Palfrey, Thomas & Turban, Sébastien, 2014. "Vote trading with and without party leaders," Journal of Public Economics, Elsevier, vol. 112(C), pages 115-128.
    22. Hirofumi Yamamura & Ryo Kawasaki, 2013. "Generalized average rules as stable Nash mechanisms to implement generalized median rules," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(3), pages 815-832, March.
    23. Steven P. Lalley & E. Glen Weyl, 2018. "Quadratic Voting: How Mechanism Design Can Radicalize Democracy," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 33-37, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandra Casella & Antonin Macé, 2021. "Does Vote Trading Improve Welfare?," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 57-86, August.
    2. Dimitrios Xefteris & Nicholas Ziros, 2024. "The “invisible hand” of vote markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 62(1), pages 153-165, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nikolas Tsakas & Dimitrios Xefteris & Nicholas Ziros, 2021. "Vote Trading in Power-Sharing Systems: A Laboratory Investigation," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1849-1882.
    2. Dimitrios Xefteris & Nicholas Ziros, 2017. "Strategic Vote Trading in Power Sharing Systems," American Economic Journal: Microeconomics, American Economic Association, vol. 9(2), pages 76-94, May.
    3. Bol, Damien & Matakos, Konstantinos & Troumpounis, Orestis & Xefteris, Dimitrios, 2019. "Electoral rules, strategic entry and polarization," Journal of Public Economics, Elsevier, vol. 178(C).
    4. Dimitrios Xefteris & Nicholas Ziros, 2024. "The “invisible hand” of vote markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 62(1), pages 153-165, February.
    5. Alessandra Casella & Antonin Macé, 2021. "Does Vote Trading Improve Welfare?," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 57-86, August.
    6. Casella, Alessandra & Turban, Sébastien, 2014. "Democracy undone. Systematic minority advantage in competitive vote markets," Games and Economic Behavior, Elsevier, vol. 88(C), pages 47-70.
    7. Casella, Alessandra & Macé, Antonin, 2020. "Does Vote Trading Improve Welfare?," CEPR Discussion Papers 15201, C.E.P.R. Discussion Papers.
    8. Enriqueta Aragonès & Javier Rivas & Áron Tóth, 2019. "Voter Heterogeneity and Political Corruption," Working Papers 1121, Barcelona School of Economics.
    9. Jon X. Eguia & Dimitrios Xefteris, 2021. "Implementation by Vote-Buying Mechanisms," American Economic Review, American Economic Association, vol. 111(9), pages 2811-2828, September.
    10. Matías Núñez & Carlos Pimienta & Dimitrios Xefteris, 2018. "Implementing the Median," Discussion Papers 2018-11, School of Economics, The University of New South Wales.
    11. Konstantinos Matakos & Orestis Troumpounis & Dimitrios Xefteris, 2015. "Turnout and Polarization Under Alternative Electoral Systems," Studies in Political Economy, in: Norman Schofield & Gonzalo Caballero (ed.), The Political Economy of Governance, edition 127, pages 335-362, Springer.
    12. Andreas Grunewald & Emanuel Hansen & Gert Pönitzsch, 2020. "Political selection and the optimal concentration of political power," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(1), pages 273-311, July.
    13. Christos Mavridis & Ignacio Ortuño-Ortín, 2018. "Polling in a proportional representation system," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(2), pages 297-312, August.
    14. Louis, Philippos & Núñez, Matías & Xefteris, Dimitrios, 2023. "Trimming extreme reports in preference aggregation," Games and Economic Behavior, Elsevier, vol. 137(C), pages 116-151.
    15. Meroni, Claudia, 2017. "Electoral competition with strategic voters," Economics Letters, Elsevier, vol. 160(C), pages 64-66.
    16. Francesco De Sinopoli & Claudia Meroni, 2022. "Poisson voting games under proportional rule," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(3), pages 507-526, April.
    17. Casella, Alessandra & Palfrey, Thomas & Turban, Sébastien, 2014. "Vote trading with and without party leaders," Journal of Public Economics, Elsevier, vol. 112(C), pages 115-128.
    18. Núñez, Matías & Pimienta, Carlos & Xefteris, Dimitrios, 2022. "On the implementation of the median," Journal of Mathematical Economics, Elsevier, vol. 99(C).
    19. Alejandro Saporiti, 2014. "Power sharing and electoral equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 705-729, April.
    20. Aragonès, Enriqueta & Rivas, Javier & Tóth, Áron, 2020. "Voter heterogeneity and political corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 206-221.

    More about this item

    Keywords

    Vote trading; Complete information; Strategic market games; Power sharing; Proportional justice.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucy:cypeua:03-2017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.ucy.ac.cy/econ/?lang=en .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.