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Divided majority and information aggregation: Theory and experiment

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  • Bouton, Laurent
  • Castanheira, Micael
  • Llorente-Saguer, Aniol
Abstract
We propose a theory-based experimental approach to compare the properties of approval voting (AV) with those of plurality. This comparison is motivated by the theoretical prediction that, in our aggregate uncertainty setup, AV should produce close to first-best outcomes, while plurality will not. The experiment shows, first, that welfare gains are substantial. Second, both aggregate and individual responses are in line with theoretical predictions, and thus with strategic voting. Finally, subjects' behavior under AV highlights the need to study equilibria in asymmetric strategies.

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  • Bouton, Laurent & Castanheira, Micael & Llorente-Saguer, Aniol, 2016. "Divided majority and information aggregation: Theory and experiment," Journal of Public Economics, Elsevier, vol. 134(C), pages 114-128.
    • Handle: RePEc:eee:pubeco:v:134:y:2016:i:c:p:114-128
    DOI: 10.1016/j.jpubeco.2015.11.003
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    Keywords

    Multicandidate elections; Information aggregation; Plurality; Approval voting; Laboratory experiments;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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