Economics at your fingertips  

Stress-testing the runoff rule in the laboratory

Nikolas Tsakas () and Dimitrios Xefteris

Games and Economic Behavior, 2021, vol. 128, issue C, 18-38

Abstract: When a majority of voters has common values, but private information, then the runoff rule always admits an equilibrium that aggregates information strictly better than any equilibrium of the plurality rule. But there are cases in which the plurality rule supports equilibria that aggregate information strictly better compared to certain undominated equilibria of the runoff rule. Is there any risk with applying the runoff rule in these situations? We conduct a laboratory experiment and we show that the runoff rule consistently delivers better outcomes than the plurality rule even in such unfavorable scenarios. This establishes that the superiority of the runoff rule over the plurality rule in empirical settings outperforms its theoretical advantages.

Keywords: Runoff voting; Plurality rule; Information aggregation; Condorcet jury theorem; Experiment (search for similar items in EconPapers)
JEL-codes: D72 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Stress-Testing the Runoff Rule in the Laboratory (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.geb.2021.03.008

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-01-10
Handle: RePEc:eee:gamebe:v:128:y:2021:i:c:p:18-38