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Condorcet solutions in frugal models of budget allocation

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  • Nehring, Klaus
  • Puppe, Clemens

Abstract

We study a voting model with incomplete information in which the evaluation of social welfare must be based on information about agents' top choices plus general qualitative background conditions on preferences. The former is elicited individually, while the latter is not. We apply this "frugal aggregation" model to multi-dimensional budget allocation problems, relying on the specific assumptions of convexity and separability of preferences. We propose a solution concept of ex-ante Condorcet winners which is widely and flexibly applicable and naturally incorporates the epistemic assumptions of particular frugal aggregation models. We show that for the case of convex preferences, the ex-ante Condorcet approach naturally leads to a refinement of the Tukey median. By contrast, in the case of separably convex preferences, the same approach leads to different solution, the 1-median, i.e. the minimization of the sum of the L1-distances to the agents' tops. An algorithmic characterization renders the latter solution analytically tractable and efficiently computable.

Suggested Citation

  • Nehring, Klaus & Puppe, Clemens, 2022. "Condorcet solutions in frugal models of budget allocation," Working Paper Series in Economics 156, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
  • Handle: RePEc:zbw:kitwps:156
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    References listed on IDEAS

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    1. Klaus Nehring & Marcus Pivato, 2022. "The median rule in judgement aggregation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(4), pages 1051-1100, June.
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    Cited by:

    1. Nehring, Klaus & Puppe, Clemens, 2023. "Multi-dimensional social choice under frugal information: The Tukey median as Condorcet winner ex ante by," Working Paper Series in Economics 160, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.

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    More about this item

    Keywords

    social choice under partial information; frugal aggregation; ex-ante Condorcetapproach; participatory budgeting; Tukey median;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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