EconPapers    
Economics at your fingertips  
 

The effect of democratic decision-making on investment in reputation

Ruth Ben-Yashar (), Miriam Krausz () and Shmuel Nitzan ()
Additional contact information
Ruth Ben-Yashar: Bar Ilan University
Miriam Krausz: Ashkelon Academic College
Shmuel Nitzan: Bar Ilan University

Public Choice, 2018, vol. 177, issue 1, 155-164

Abstract: Abstract Students wish to increase the probability of being admitted to a prestigious school. Job candidates are interested in the probability of getting desirable employment. Defendants are concerned about the probability of being acquitted. In all such binary settings, the probability of the desirable outcome to individuals can be affected by their reputations. Applying the classical Condorcet Jury Theorem framework in which decision makers are assumed to be non-strategic, we focus on how the nature of the applied decision-making rule affects the individuals’ incentives to invest in improvement of their reputations. Our main results establish that, within the family of democratic majority voting rules, simple majority rule (a rule of unanimous consent) ensures that the marginal productivity of reputation is largest (smallest) and that it increases (decreases) with the size of the decision-making committee.

Keywords: Decision-making structure; Investment in reputation; Simple majority; Unanimous consent (search for similar items in EconPapers)
JEL-codes: D7 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11127-018-0595-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:kap:pubcho:v:177:y:2018:i:1:d:10.1007_s11127-018-0595-4

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11127/PS2

Access Statistics for this article

Public Choice is currently edited by WIlliam F. Shughart II

More articles in Public Choice from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-04-07
Handle: RePEc:kap:pubcho:v:177:y:2018:i:1:d:10.1007_s11127-018-0595-4