The option to wait in collective decisions and optimal majority rules

Matthias Messner and Mattias K Polborn

Journal of Public Economics, 2012, vol. 96, issue 5, 524-540

Abstract: We consider a model in which voters over time receive more information about their preferences concerning an irreversible social decision. Voters can either implement the project in the first period, or they can postpone the decision to the second period. We analyze the effects of different majority rules. Individual first period voting behavior may become “less conservative” under supermajority rules, and it is even possible that a project is implemented in the first period under a supermajority rule that would not be implemented under simple majority rule.

Keywords: Supermajority rules; Information; Investment; Option value (search for similar items in EconPapers)
JEL-codes: D72 D81 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:96:y:2012:i:5:p:524-540

DOI: 10.1016/j.jpubeco.2012.01.002

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