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Abstract:

Theoretical Economics Paper
Dynamic Voting in Clubs
Kevin Roberts
January 1999
Paper No' TE/1999/367:
Full Paper (pdf)

Tags: cooperatives; local public goods; majority voting; median voter; organization size; partnerships; trade unions.

This paper examines the process and outcomes of democratic decision-making in clubs where a club is defined by their sets of members whose preferences and decisions relate to the set of members in the club: the electorate to endogenous. Examples range from international organizations like the European Union and NATO to firms, workers' cooperatives and trade unions. Although the policy space is infinite, a majority voting equilibrium exists under plausible conditions and the equilibrium rule and the dynamics of clubs are characterised. Two types of club, one where a group funds some public good and the other where a given benefit is shared by the group, are analysed in detail.