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Committees with leaks

Author

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  • Ghosh, Saptarshi P.
  • Roy, Jaideep

Abstract

We analyze the quality (informativeness and efficiency) of advice obtained from a committee of careerist experts where voting is secret but voting profiles are ‘leaked’ with an exogenously given probability. We show that fully informative voting is achievable only when the common prior is not too informative, the committee uses the unanimity rule and faces random leakage. It is then shown that informativeness and efficiency are mutually exclusive properties of committees with careerist experts.

Suggested Citation

  • Ghosh, Saptarshi P. & Roy, Jaideep, 2015. "Committees with leaks," Games and Economic Behavior, Elsevier, vol. 90(C), pages 207-214.
    • Handle: RePEc:eee:gamebe:v:90:y:2015:i:c:p:207-214
    DOI: 10.1016/j.geb.2015.02.012
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    References listed on IDEAS

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    1. Gilat Levy, 2007. "Decision Making in Committees: Transparency, Reputation, and Voting Rules," American Economic Review, American Economic Association, vol. 97(1), pages 150-168, March.
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    4. Hans Gersbach & Volker Hahn, 2008. "Should the individual voting records of central bankers be published?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(4), pages 655-683, May.
    5. John Fingleton, 2005. "Career Concerns of Bargainers," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(1), pages 179-204, April.
    6. Zwiebel, Jeffrey, 1995. "Corporate Conservatism and Relative Compensation," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 1-25, February.
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    10. Marco Ottaviani & Peter Norman Sørensen, 2006. "Reputational cheap talk," RAND Journal of Economics, RAND Corporation, vol. 37(1), pages 155-175, March.
    11. Ottaviani, Marco & Sorensen, Peter Norman, 2006. "Professional advice," Journal of Economic Theory, Elsevier, vol. 126(1), pages 120-142, January.
    12. Gilat Levy, 2007. "Decision–Making Procedures for Committees of Careerist Experts," American Economic Review, American Economic Association, vol. 97(2), pages 306-310, May.
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    Cited by:

    1. Hahn, Volker, 2017. "Committee design with endogenous participation," Games and Economic Behavior, Elsevier, vol. 102(C), pages 388-408.
    2. Fehrler, Sebastian & Hahn, Volker, 2020. "Committee Decision-Making under the Threat of Leaks," IZA Discussion Papers 13746, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Leakage; Career concerns; Informative voting; Welfare;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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