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A Problem with Referendums

Author

Listed:
  • Dean Lacy
  • Emerson M.S. Niou
Abstract
When some voters have nonseparable preferences across multiple binary issues, majority rule may not select a Condorcet winning set of outcomes when one exists, and the social choice may be a Condorcet loser or Pareto-dominated by every other set of outcomes. We present an empirical example of one such paradox from voting on the Internet. We evaluate potential solutions to the problem of nonseparable preferences in referendums, including set-wise voting, sequential voting, and vote-trading. Sequential voting and vote-trading prevent the selection of Condorcet losers and universally Pareto-dominated outcomes. Legislatures facilitate sequential voting and vote-trading better than referendums, suggesting that referendums increase the quantity of participants in democratic decision-making but decrease the quality of participation.

Suggested Citation

  • Dean Lacy & Emerson M.S. Niou, 2000. "A Problem with Referendums," Journal of Theoretical Politics, , vol. 12(1), pages 5-31, January.
    • Handle: RePEc:sae:jothpo:v:12:y:2000:i:1:p:5-31
    DOI: 10.1177/0951692800012001001
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    References listed on IDEAS

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    1. Amihai Glazer & Anthony McGann, 2005. "Direct Democracy and the Stability of State Policy," Working Papers 050615, University of California-Irvine, Department of Economics.
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    3. Gilbert Laffond & Jean Lainé, 2012. "Searching for a Compromise in Multiple Referendum," Group Decision and Negotiation, Springer, vol. 21(4), pages 551-569, July.
    4. Meir, Reshef & Kalai, Gil & Tennenholtz, Moshe, 2018. "Bidding games and efficient allocations," Games and Economic Behavior, Elsevier, vol. 112(C), pages 166-193.

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