Orchestrating Organizational Politics: Baron and Ferejohn Meet Tullock

Fuente: arXiv
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Autori principali: Fu, Qiang, Wu, Zenan, Zhu, Yuxuan
Natura: Preprint
Pubblicazione: 2024
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author Fu, Qiang
Wu, Zenan
Zhu, Yuxuan
author_facet Fu, Qiang
Wu, Zenan
Zhu, Yuxuan
contents This paper examines the optimal organizational rules that govern the process of dividing a fixed surplus. The process is modeled as a sequential multilateral bargaining game with costly recognition. The designer sets the voting rule -- i.e., the minimum number of votes required to approve a proposal -- and the mechanism for proposer recognition, which is modeled as a biased generalized lottery contest. We show that for diverse design objectives, the optimum can be achieved by a dictatorial voting rule, which simplifies the game into a standard biased contest model.
format Preprint
id arxiv_https___arxiv_org_abs_2411_08419
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Orchestrating Organizational Politics: Baron and Ferejohn Meet Tullock
Fu, Qiang
Wu, Zenan
Zhu, Yuxuan
Theoretical Economics
This paper examines the optimal organizational rules that govern the process of dividing a fixed surplus. The process is modeled as a sequential multilateral bargaining game with costly recognition. The designer sets the voting rule -- i.e., the minimum number of votes required to approve a proposal -- and the mechanism for proposer recognition, which is modeled as a biased generalized lottery contest. We show that for diverse design objectives, the optimum can be achieved by a dictatorial voting rule, which simplifies the game into a standard biased contest model.
title Orchestrating Organizational Politics: Baron and Ferejohn Meet Tullock
topic Theoretical Economics
url https://arxiv.org/abs/2411.08419