Risk Aversion, Over-Confidence and Private Information as Determinants of Majority Thresholds

Giuseppe Attanasi, Luca Corazzini, Nikolaos Georgantzís () and Francesco Passarelli

No 09-088, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We study, both theoretically and experimentally, the relation between preferred majority thresholds and behavioral traits such as the degree of risk aversion and the subjective confidence on others preferences over the alternative to vote. The main theoretical findings are supported by experimental data. The majority threshold chosen by a subject is positively and significantly correlated with her degree of risk aversion while it is negatively and significantly associated to her confidence on others’ votes. Moreover, in a treatment in which each subject can privately observe the distribution of preferences over a sub-group of participants, we find that the quality of information crowds-out subject's confidence.

Keywords: majority threshold; risk aversion; (over-)confidence (search for similar items in EconPapers)
JEL-codes: D72 D81 D91 H11 (search for similar items in EconPapers)
Date: 2010-04
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Risk Aversion, Over-Confidence and Private Information as determinants of Majority Thresholds (2009)
Working Paper: Risk Aversion, Over-Confidence and Private Information as Determinants of Majority Thresholds (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:22195

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