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Divided Majority and Information Aggregation: Theory and Experiment

Author

Listed:
  • Laurent Bouton

    (Boston University)

  • Micael Castanheira

    (Université Libre de Bruxelles)

  • Aniol Llorente-Saguer

    (Max Planck Institute for Research on Collective Goods, Bonn)

Abstract
This paper both theoretically and experimentally studies the properties of plurality and approval voting when the majority is divided as a result of information imperfections. The minority backs a third alternative, which the majority views as strictly inferior. The majority thus faces two problems: aggregating information and coordinating to defeat the minority candidate. Two types of equilibria coexist under plurality: either voters aggregate information, but this requires splitting their votes, or they coordinate but cannot aggregate information. With approval voting, expected welfare is strictly higher, because some voters multiple vote to achieve both goals at once. In the laboratory, we observe both types of equilibrium under plurality. Which one is selected depends on the size of the minority. Approval voting vastly outperforms plurality. Finally, subject behavior suggests the need to study asymmetric equilibria.

Suggested Citation

  • Laurent Bouton & Micael Castanheira & Aniol Llorente-Saguer, 2012. "Divided Majority and Information Aggregation: Theory and Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2012_20, Max Planck Institute for Research on Collective Goods.
    • Handle: RePEc:mpg:wpaper:2012_20
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    More about this item

    Keywords

    Experiments; Multicandidate Elections; Plurality; Approval Voting;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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