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Cake division by majority decision

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We consider a collective choice process where three players make proposals sequentially on how to divide a given quantity of resources. Afterwards, one of the proposals is chosen by majority decision. If no proposal obtains a majority, a proposal is drawn by lot. We establish the existence of the se...

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Bibliographic Details
Main Authors: Gersbach, Hans (Author) , Pachl, Bernhard (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Munich Univ., Center for Economic Studies [u.a.] 2006
Series:CESifo working paper series Public choice 1872
In: CESifo working papers (1872)

Subjects:
Mehrheitsentscheidung
Verteilungsgerechtigkeit
Online Access: Get full text
Author Notes:Hans Gersbach; Bernhard Pachl

MARC

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520 |a We consider a collective choice process where three players make proposals sequentially on how to divide a given quantity of resources. Afterwards, one of the proposals is chosen by majority decision. If no proposal obtains a majority, a proposal is drawn by lot. We establish the existence of the set of subgame perfect equilibria, using a suitable refinement concept. In any equilibrium, the first agent offers the whole cake to the second proposal-maker, who in turn offers the whole cake back to the first agent. The third agent is then indifferent about dividing the cake between himself and the first or the second agent. 
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