Decision Costs and Welfare Effects of Democratic Voting Rules: an Experimental Analysis

Abstract

AbstractWhat impact do majority rule and unanimity rule have on welfare and decision costs? According to Buchanan and Tullock ([1962] 1999) the unanimity principle must be regarded as a democratic norm, because it guarantees Pareto-efficient welfare effects. We present experimental results from a public goods game, which demonstrate in contrast to this assumption that majority rule can produce greater welfare effects than unanimity rule. This result suggests a critical revision of theoretical approaches which narrow the legiti­macy of majority rule in this respect.