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The flip side of power

Friedel Bolle and Philipp E. Otto ()
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Philipp E. Otto: European University Viadrina, Frankfurt (Oder)

No 26, Discussion Paper Series RECAP15 from RECAP15, European University Viadrina, Frankfurt (Oder)

Abstract: Based on power indices as well as intuition, the chairman of a committee whose vote decides in the case of a draw has more power than ordinary voters. Even more powerful are members with veto right, who can block a majority vote. We pose the question whether giving one of the players in a majority voting game more power is beneficial for the powerful individual and/or the community. We find that, in our environment, the introduction of a powerful player is efficiency-improving, but that powerful players earn less than their ordinary co-players. Our environment is a Binary Threshold Public Good game which can also be interpreted as a general non- cooperative voting game. We supplement our investigation by successfully explaining behavior as a finite mixture of mostly equilibrium strategies.

Keywords: veto power; tie-breaking power; binary threshold public goods; experiment (search for similar items in EconPapers)
JEL-codes: D71 D72 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth, nep-hpe, nep-mic and nep-pol
Date: 2017-03
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https://www.europa-uni.de/de/forschung/institut/re ... ds/recap15_DP026.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:euv:dpaper:26

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