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Optimal Majority Rule in Referenda

Author

Listed:
  • Qingqing Cheng

    (Department of Theory, Party School of Haimen Committee of CPC (Haimen Administration Institute), Haimen 226100, China)

  • Ming Li

    (1455 Boulevard de Maisonneuve Ouest, Department of Economics, Concordia University, Montreal, QC H3G 1M8, Canada
    CIRANO, Montreal, QC H3A 2M8, Canada
    CIREQ, Montreal, QC H3T 1N8, Canada)

Abstract

Adopting the group turnout model of Herrera and Mattozzi, J. Eur. Econ. Assoc. 2010 , 8 , 838–871, we investigate direct democracy with supermajority rule and different preference intensities for two sides of a referendum: Reform versus status quo. Two parties spend money and effort to mobilize their voters. We characterize the set of pure strategy Nash equilibria. We investigate the optimal majority rule that maximizes voters’ welfare. Using an example, we show that the relationship between the optimal majority rule and the preference intensity is not monotonic—the optimal majority rule is initially decreasing and then increasing in the preference intensity of the status quo side. We also show that when the preference intensity of the status quo side is higher, the easiness to mobilize voters on the status quo side is lower, or the payoff that the reform party receives is higher, the optimal majority rule is more likely to be supermajority.

Suggested Citation

  • Qingqing Cheng & Ming Li, 2019. "Optimal Majority Rule in Referenda," Games, MDPI, vol. 10(2), pages 1-23, June.
    • Handle: RePEc:gam:jgames:v:10:y:2019:i:2:p:25-:d:236869
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    References listed on IDEAS

    as
    1. Helios Herrera & Andrea Mattozzi, 2006. "Turnout and Quorum in Referenda," Levine's Bibliography 321307000000000230, UCLA Department of Economics.
    2. Attanasi, Giuseppe & Corazzini, Luca & Passarelli, Francesco, 2017. "Voting as a lottery," Journal of Public Economics, Elsevier, vol. 146(C), pages 129-137.
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    4. Helios Herrera & Andrea Mattozzi, 2010. "Quorum and Turnout in Referenda," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 838-871, June.
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