Skip to main content
main-content
Top

Hint

Swipe to navigate through the articles of this issue

07-08-2018 | Issue 1-2/2018

Public Choice 1-2/2018

The effect of democratic decision-making on investment in reputation

Journal:
Public Choice > Issue 1-2/2018
Authors:
Ruth Ben-Yashar, Miriam Krausz, Shmuel Nitzan

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.

Please log in to get access to this content

To get access to this content you need the following product:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 69.000 Bücher
  • über 500 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Umwelt
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Testen Sie jetzt 30 Tage kostenlos.

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 58.000 Bücher
  • über 300 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Testen Sie jetzt 30 Tage kostenlos.

Literature
About this article

Other articles of this Issue 1-2/2018

Public Choice 1-2/2018 Go to the issue

Premium Partner

    Image Credits