Engelmann, Dirk Grüner, Hans Peter Hoffmann, Timo Possajennikov, Alex
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Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Experiments - Games IV F01-V2
In democracies, an absolute majority of the population may choose policies that are harmful to the rest of the population. A purpose of super-majority rules is to prevent this from happening. We study whether individuals optimally choose sub- or super-majority rules when the rights of minorities should be protected. Subjects propose more extreme voting rules for more skewed distributions, but we also find that rule choices are biased towards balanced rules, leading substantial welfare losses.