On Robust Constitution Design

29 Pages Posted: 9 May 2002

See all articles by Emmanuelle Auriol

Emmanuelle Auriol

University of Toulouse 1 - Toulouse School of Economics (TSE); University of Toulouse I - Advanced Research in Quantitative Applied Development Economics (ARQADE); CESifo (Center for Economic Studies and Ifo Institute)

Robert J. Gary-Bobo

CREST ENSAE; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Date Written: April 2002

Abstract

We study a class of representation mechanisms, based on reports made by a random subset of agents, called representatives, in a collective choice problem with quasi-linear utilities. We do not assume the existence of a common prior probability describing the distribution of preference types. In addition, there is no benevolent planner. An individual who cannot be assumed impartial, a self-interested executive, will carry out decisions. These assumptions impose new constraints on Mechanism Design. A robust mechanism is defined as maximizing expected welfare under a vague prior probability distribution, and over a set of mechanisms which is at the same time immune from opportunistic manipulations by the executive, and compatible with truthful revelation of preferences by representatives. Robust mechanisms are characterized and their existence is shown. Sampling Groves mechanisms are shown to be robust.

Keywords: Collective choice, incomplete information, mechanism design, representative democracy

JEL Classification: D70, D80, H00

Suggested Citation

Auriol, Emmanuelle and Gary-Bobo, Robert J., On Robust Constitution Design (April 2002). CEPR Discussion Paper No. 3303. Available at SSRN: https://ssrn.com/abstract=311408

Emmanuelle Auriol (Contact Author)

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

University of Toulouse I - Advanced Research in Quantitative Applied Development Economics (ARQADE) ( email )

21 Allee de Brienne
Toulouse, 31000
France
+33 5 61 12 85 89 (Phone)
+33 5 61 12 86 37 (Fax)

HOME PAGE: http://www.idei.asso.fr/English/ECv/CvChercheurs/E

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Robert J. Gary-Bobo

CREST ENSAE ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France
+33141176031 (Phone)

HOME PAGE: http://www.crest.fr/ses.php?user=3042

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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