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Flip a coin or vote: An Experiment on Choosing Group Decision Rules

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  • Hoffmann, Timo
  • Renes, Sander

Abstract

Before a group can take a decision, its members must agree on a mechanism to aggregate individual preferences. In this paper we present the results of an experiment on the influence of private payoff information and the role of the available alternatives on individuals’ mechanism choices in such group choice situations. While efficient mechanisms are desirable, we experimentally show that participation constraints can prevent their implementation. We find strong indications that individual preferences for choice rules are sensitive to individual expected payoffs. Our results highlight the importance of considering participation constraints when designing choice institutions.

Suggested Citation

  • Hoffmann, Timo & Renes, Sander, 2016. "Flip a coin or vote: An Experiment on Choosing Group Decision Rules," VfS Annual Conference 2016 (Augsburg): Demographic Change 145474, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145474
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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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