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Group Formation and Governance
Author(s) -
RENOU LUDOVIC
Publication year - 2011
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/j.1467-9779.2011.01513.x
Subject(s) - unanimity , status quo , corporate governance , economics , group (periodic table) , simple (philosophy) , microeconomics , political science , market economy , chemistry , law , management , organic chemistry , philosophy , epistemology
This paper studies the impact of the governance of a group, whether be it unanimity, simple majority, or qualified majority, on its (endogenously derived) size, composition, and inclination to change the status quo. Somewhat surprisingly, we show that not only unanimity might favor the formation of larger groups than majority, but also a change of status quo.