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Coordination Behavior and Optimal Committee Size

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  • Keiichi Morimoto

    (Graduate School of Economics, Osaka University)

Abstract

How many members should committees consist of? This paper addresses this question in view of imperfect information and coordination behavior among the members, which is a new approach alternative to introducing information acquisition cost. First, using a simple model, I show that the existence of the coordination motive dismisses Condorcet fs (1785) suggestion and the finite optimal size of the committee is determined. Second, I provide an application of the mechanism to monetary policy committees in a basic New Keynesian model. This example will inspire other applications to policy issues in the dynamic stochastic general equilibrium framework.

Suggested Citation

  • Keiichi Morimoto, 2010. "Coordination Behavior and Optimal Committee Size," Discussion Papers in Economics and Business 10-02, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1002
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1002.pdf
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    References listed on IDEAS

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    1. Stephen Morris & Hyun Song Shin, 2002. "Social Value of Public Information," American Economic Review, American Economic Association, vol. 92(5), pages 1521-1534, December.
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    Cited by:

    1. Keiichi Morimoto, 2009. "Optimal Structure of Monetary Policy Committees," Discussion Papers in Economics and Business 09-36-Rev, Osaka University, Graduate School of Economics, revised Dec 2009.
    2. Tim Aldridge & Amy Wood, 2014. "Monetary policy decision-making and accountability structures: some cross-country comparisons," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 77, pages 15-30, March.
    3. Vidal, Jean-Pierre & Maurin, Vincent, 2012. "Monetary policy deliberations: committee size and voting rules," Working Paper Series 1434, European Central Bank.

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    More about this item

    Keywords

    committee; Condorcet jury theorem; coordination; higher order beliefs monetary policy;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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