TY - JOUR
T1 - Premise-based versus outcome-based information aggregation
AU - de Clippel, Geoffroy
AU - Eliaz, Kfir
N1 - Publisher Copyright:
© 2014 Elsevier Inc.
PY - 2015/1/1
Y1 - 2015/1/1
N2 - A group of rational individuals with common interest need to select one of two outcomes. The optimal decision depends on whether certain premises or pieces of evidence are established as being true, and each member receives a noisy signal of the truth value of the relevant premises. Should the group reach a decision by voting whether each premise is true or false, or should they simply vote on the outcome? We show that for any finite number of individuals, the premise-based voting rule is more efficient in aggregating information than the outcome-based rule. However, generically, the gain from using the premise-based over the outcome-based rule can only be marginal when numerous individuals express independent opinions. Indeed, the outcome-based game is almost always asymptotically efficient.
AB - A group of rational individuals with common interest need to select one of two outcomes. The optimal decision depends on whether certain premises or pieces of evidence are established as being true, and each member receives a noisy signal of the truth value of the relevant premises. Should the group reach a decision by voting whether each premise is true or false, or should they simply vote on the outcome? We show that for any finite number of individuals, the premise-based voting rule is more efficient in aggregating information than the outcome-based rule. However, generically, the gain from using the premise-based over the outcome-based rule can only be marginal when numerous individuals express independent opinions. Indeed, the outcome-based game is almost always asymptotically efficient.
KW - C7
KW - D7
KW - D8
KW - Doctrinal paradox
KW - Strategic voting
UR - http://www.scopus.com/inward/record.url?scp=84916887286&partnerID=8YFLogxK
U2 - 10.1016/j.geb.2014.10.011
DO - 10.1016/j.geb.2014.10.011
M3 - ???researchoutput.researchoutputtypes.contributiontojournal.article???
AN - SCOPUS:84916887286
SN - 0899-8256
VL - 89
SP - 34
EP - 42
JO - Games and Economic Behavior
JF - Games and Economic Behavior
ER -