Risk Aversion, Over-Confidence and Private Information as Determinants of Majority Thresholds

Attanasi, Giuseppe Marco, Corazzini, Luca, Georgantzis, Nikolaos and Passarelli, Francesco (2010) Risk Aversion, Over-Confidence and Private Information as Determinants of Majority Thresholds. TSE Working Paper, n. 09-088

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Official URL: http://tse-fr.eu/pub/22195

Abstract

We study, both theoretically and experimentally, the relation between preferred majority thresholds and behavioral traits such as the degree of risk aversion and the subjective confidence on others preferences over the alternative to vote. The main theoretical findings are supported by experimental data. The majority threshold chosen by a subject is positively and significantly correlated with her degree of risk aversion while it is negatively and significantly associated to her confidence on others’ votes. Moreover, in a treatment in which each subject can privately observe the distribution of preferences over a sub-group of participants, we find that the quality of information crowds-out subject's confidence.

Item Type: Monograph (Working Paper)
Language: English
Date: April 2010
Uncontrolled Keywords: majority threshold, risk aversion, (over-)confidence
JEL codes: D72 - Economic Models of Political Processes - Rent-Seeking, Elections, Legislatures, and Voting Behavior
D81 - Criteria for Decision-Making under Risk and Uncertainty
D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
H11 - Structure, Scope, and Performance of Government
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 18 Jan 2012 06:00
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:22195
URI: http://publications.ut-capitole.fr/id/eprint/3254

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