Optimal Majority Rule Versus Simple Majority Rule

Abstract We consider social dynamics determined by voting in a stochastic environment with qualified majority rules for homogeneous society consisting of classically rational economic agents. Proposals are generated by means of random variables in accordance with the ViSE model. In this case, there is an optimal, in terms of maximizing the agents’ expected utility, majority threshold for any specific environment parameters. We obtain analytical expression for this optimal threshold as a function of the parameters of the environment and specialize this expression for several distributions. Furthermore, we compare the relative effectiveness of the optimal and simple (with the threshold of 0. 5) majority rule.

Authors

• Vitaly A. Malyshev

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