Coalition formation for unpopular reform in the presence of private reputation costs
نویسنده
چکیده
This paper studies coalition formation under asymmetric information. An outside party o ers private payments in order to in uence the collective decision over an unpopular reform. The willingness to accept such payments is private information. The paper demonstrates that a supermajority coalition induces truth-telling and secures the implementation of the decision for a price close to the full information minimal winning coalition price. On the contrary, if the minimal winning coalition is formed, then no revelation is possible.
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