Information aggregation with continuum of types

Irem Bozbay, Hans Peters

Research output: Working paperProfessional

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Abstract

We consider an information aggregation problem where a group of voters wants to make a `yes' or `no' decision over a single issue. Voters have state-dependent common preferences, but hold possibly conflicting private information about the state in the form of types (signals). We assume that types are distributed from a state-dependent continuous distribution. In this model, Bayesian equilibrium voting and efficient voting coincide, and informative voting means that a voter votes in favor of the issue if and only if the signal exceeds a cut-point level. Our main result is an answer, in the form of a condition on the parameters of the model, to the question when informative voting is efficient.
Original languageEnglish
PublisherMaastricht University, Graduate School of Business and Economics
Publication statusPublished - 12 Dec 2017

Publication series

SeriesGSBE Research Memoranda
Number032

JEL classifications

  • c70 - Game Theory and Bargaining Theory: General
  • d70 - Analysis of Collective Decision-Making: General
  • d71 - "Social Choice; Clubs; Committees; Associations"
  • d80 - Information, Knowledge, and Uncertainty: General
  • d82 - "Asymmetric and Private Information; Mechanism Design"

Keywords

  • private information
  • efficient information aggregation
  • strategic voting

Cite this

Bozbay, I., & Peters, H. (2017). Information aggregation with continuum of types. Maastricht University, Graduate School of Business and Economics. GSBE Research Memoranda, No. 032