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Procedurally Fair Provision of Public Projects An axiomatic characterization

Author

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  • Werner Güth

    (Max Planck Institute of Economics, Strategic Interaction Group)

  • Hartmut Kliemt

Abstract

Unanimous voting as the fundamental procedural source of political legitimacy grants veto power to each individual. We present an axiomatic characterization of a class of bidding processes to spell out the underlying egalitarian values for collective projects of a "productive state". At heart of such procedures is the determination of payments for all possible bid vectors such that equal "profits" according to bids emerge. Along with other intuitive requirements this characterizes procedurally fair bidding rules for advantageous projects of a collectivity.

Suggested Citation

  • Werner Güth & Hartmut Kliemt, 2011. "Procedurally Fair Provision of Public Projects An axiomatic characterization," Jena Economics Research Papers 2011-016, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2011-016
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2011/wp_2011_016.pdf
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    References listed on IDEAS

    as
    1. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, January.
    2. Kliemt, Hartmut, 1994. "The Calculus of Consent after Thirty Years," Public Choice, Springer, vol. 79(3-4), pages 341-353, June.
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    Cited by:

    1. Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati & Matteo Ploner, 2012. "Public projects benefiting some and harming others: three experimental studies," Jena Economics Research Papers 2012-034, Friedrich-Schiller-University Jena.
    2. Werner Güth, 2011. "Collectively Ranking Candidates - An Axiomatic Approach -," Jena Economics Research Papers 2011-020, Friedrich-Schiller-University Jena.
    3. Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati, 2011. ""One man's meat is another man's poison." An experimental study of voluntarily providing public projects that raise mixed feelings," Jena Economics Research Papers 2011-034, Friedrich-Schiller-University Jena.
    4. Simona Cicognani & Anna D’Ambrosio & Werner Güth & Simone Pfuderer & Matteo Ploner, 2015. "Community projects: an experimental analysis of a fair implementation process," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(1), pages 109-132, January.
    5. Güth, Werner & Vittoria Levati, M. & Montinari, Natalia, 2014. "Ranking alternatives by a fair bidding rule: A theoretical and experimental analysis," European Journal of Political Economy, Elsevier, vol. 34(C), pages 206-221.

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    More about this item

    Keywords

    Unanimity in Collective Decision Making; Buchanan; Wicksell;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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