|
EconStor >
Max Planck Institute for Research on Collective Goods, Bonn >
Preprints of the Max Planck Institute for Research on Collective Goods >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/57479
|
| | |
| Title: | | Competitive equilibrium in markets for votes  |
| Authors: | | Casella, Alessandra Llorente-Saguer, Aniol Palfrey, Thomas R. |
| Issue Date: | | 2012 |
| Series/Report no.: | | Preprints of the Max Planck Institute for Research on Collective Goods 2012,03 |
| Abstract: | | We develop a competitive equilibrium theory of a market for votes. Before voting on a binary issue, individuals may buy and sell their votes with each other. We define the concept of ex ante vote-trading equilibrium, and show by construction that an equilibrium exists. The equilibriumwe characterize always results in dictatorship if there is any trade, and the market for votes generates welfare losses, relative to simple majority voting, if the committee is large enough or the distribution of values not very skewed. We test the theoretical implications by implementing a competitive vote market in the laboratory using a continuous open-book multi-unit double auction. |
| Subjects: | | Experiments Voting Markets Vote Trading Competitive Equilibrium |
| JEL: | | C92 C72 D70 P16 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Preprints of the Max Planck Institute for Research on Collective Goods
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/57479
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|