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Decision Making in Committees: Transparency, Reputation, and Voting Rules

Gilat Levy1,2

1 London School of Economics and Political Science · 2 Lahore School of Economics

American Economic Review 2007

In this paper I analyze the e¤ect of the transparency of the decision making process in committees on the decisions that are eventually taken.I focus on committees whose members are motivated by career concerns, so that each member tries to enhance his own reputation.When the decision making process is secretive, the individual votes of the committee members are not exposed to the public but only the …nal decision.Thus, individuals are evaluated according to the group's decision.I …nd that in such a case, group members are induced to comply with preexisting biases.For example, if the voting rule demands a supermajority to accept a reform, individuals vote more often against reforms and exacerbate the conservatism of the voting rule.When the decision making process becomes transparent and individual votes are observed, this e¤ect disappears and such committees are then more likely to accept reforms.I also …nd that coupled with the right voting rule, a secretive procedure may induce better decisions than a transparent one.

DOI
10.1257/000282807780323398
Volume
97 (1)
Pages
150-168
Language
en
Export
BibTeX
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