Borgers, Tilman and Smith, Doug (2011): Robust mechanism design and dominant strategy voting rules.
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We develop an analysis of voting rules that is robust in the sense that we do not make any assumption regarding voters’ knowledge about each other. In dominant strategy voting rules, voters’ behavior can be predicted uniquely without making any such assumption. However, on full domains, the only dominant strategy voting rules are random dictatorships. We show that the designer of a voting rule can achieve Pareto improvements over random dictatorship by choosing rules in which voters’ behavior can depend on their beliefs. The Pareto improvement is achieved for all possible beliefs. The mechanism that we use to demonstrate this result is simple and intuitive, and the Pareto improvement result extends to all equilibria of the mechanism that satisfy a mild refinement. We also show that the result only holds for voters’ interim expected utilities, not for their ex post expected utilities.
|Item Type:||MPRA Paper|
|Original Title:||Robust mechanism design and dominant strategy voting rules|
|Keywords:||robust mechanism design; dominant strategies; voting; Gibbard-Satterthwaite theorem|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory
|Depositing User:||Tilman Börgers|
|Date Deposited:||01. Mar 2012 15:51|
|Last Modified:||20. Feb 2013 05:52|
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