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On the costly voting model: the mean rule

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  • Anna Panova

    (National Research University Higher School of Economics)

Abstract

In this paper, we study a model in which a policy is chosen by a group of people through the formation of a committee. Attending the committee is costly, and each person decides whether to take part in it or not. Our work complements Osborne, Rosenthal and Turner (2000) since we allow various types of costs. We work with the mean compromise function, and we do not restrict the distribution of the favourite policy of the group members. Under these assumptions, we establish the existence of pure Nash equilibrium and show that, in comparison to the case of the median compromise function, the outcome of the committee’s work is less random and is not likely to be extreme. In the case of constant costs of participation, we show that when the costs increase, the size of the equilibrium committee decreases and the spread of the outcomes increases.

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  • Anna Panova, 2021. "On the costly voting model: the mean rule," Annals of Operations Research, Springer, vol. 301(1), pages 183-198, June.
    • Handle: RePEc:spr:annopr:v:301:y:2021:i:1:d:10.1007_s10479-021-03948-x
    DOI: 10.1007/s10479-021-03948-x
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    References listed on IDEAS

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    1. Dennis Leech, 2002. "Voting Power in the Governance of the International Monetary Fund," Annals of Operations Research, Springer, vol. 109(1), pages 375-397, January.
    2. Bulkley, George & Myles, Gareth D & Pearson, Bernard R, 2001. "On the Membership of Decision-Making Committees," Public Choice, Springer, vol. 106(1-2), pages 1-22, January.
    3. Riker, William H. & Ordeshook, Peter C., 1968. "A Theory of the Calculus of Voting," American Political Science Review, Cambridge University Press, vol. 62(1), pages 25-42, March.
    4. Krasa, Stefan & Polborn, Mattias K., 2009. "Is mandatory voting better than voluntary voting?," Games and Economic Behavior, Elsevier, vol. 66(1), pages 275-291, May.
    5. Riker, William H. & Ordeshook, Peter C., 1968. "A Theory of the Calculus of Voting," American Political Science Review, Cambridge University Press, vol. 62(1), pages 25-42, March.
    6. Jeffrey S. Rosenthal & Martin J. Osborne & Matthew A. Turner, 2000. "Meetings with Costly Participation," American Economic Review, American Economic Association, vol. 90(4), pages 927-943, September.
    7. Leech, Dennis, 2002. "Voting Power In The Governance Of The International Monetary Fund," Economic Research Papers 269354, University of Warwick - Department of Economics.
    8. 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.
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    Keywords

    Costly voting; Committee;

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