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Strategic vote trading under complete information

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  • Xefteris, Dimitrios
  • Ziros, Nicholas

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 – arepublic 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.

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  • Xefteris, Dimitrios & Ziros, Nicholas, 2018. "Strategic vote trading under complete information," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 52-58.
    • Handle: RePEc:eee:mateco:v:78:y:2018:i:c:p:52-58
    DOI: 10.1016/j.jmateco.2018.07.009
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    Cited by:

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    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.

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    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

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