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Gilligan Krehbiel (1987) - Collective Decision Making And Standing Committees (view source)
Revision as of 19:09, 19 May 2010
, 19:09, 19 May 2010no edit summary
The outcome (<math>x\,</math>) is linear in both the policy (<math>p\,</math>) and random variable (<math>\omega \sim U[0,1]\,</math>, such that <math>\mathbb{E}\omega = \overbaroverline{\omega}\,</math> and <math>\mathbb{V}\omega = \sigma_{\omega}^2\,</math>) concerning the state of the world. That is:
:<math>x = p+ \omega\,</math>
The sequence of the game is as follows:
#The floor chooses <math>P \in \{P^U,P^R\}\,</math> (Note not to be confused with the policy space <math>P\,</math>)
#The committee chooses <math>s \in \{0,1\}\,</math> (i.e. symmetric or asymmetric uncertainty)
#Nature chooses the state of the world <math>\omega \sim U[0,1]\,</math>
