A computer simulation is used to study collective judgements that an expert panel reaches on the basis of qualitative probability judgements contributed by individual members. The simulated panel displays a strong and robust crowd wisdom effect. The panel's performance is better when members contribute precise probability estimates instead of qualitative judgements, but not by much. Surprisingly, it doesn't always hurt for panel members to interpret the probability expressions differently. Indeed, coordinating their understandings can be much worse.

Consider the following two seemingly unrelated questions. First, why does Rousseau (1993 [1762]) believe that the formation of factions or partial associations is not conducive to the general will in Du Contrat Social, II, 3? Second, why do federal assemblies typically strive for some form of degressive proportionality, i.e. a balance between equal and proportional representation, for the countries in the federation? We will show that there is a surprising connection between these questions. We turn to our first question. It (...) is often thought that Rousseau’s opposition to factions can be interpreted in reference to the Condorcet Jury Theorem. The Condorcet Jury Theorem states that if voters are more likely to be right on some issue than not and cast their votes independently, then the chance that the majority is correct converges to one as the number of voters goes to infinity. This interpretation is tempting, but it is inconsistent with some crucial textual evidence. We turn to our second question. Consider a federation of countries with a decision-making assembly in which each country casts a block vote. On equal representation, the vote of each country has the same weight. On proportional representation, the weights of the votes are proportional to the countries’ population sizes. In between these extremes, we can let the weights increase as a function of population sizes, but smaller countries receive greater weights and larger countries receive lesser weights than proportionality would warrant. Such weightings are called degressively proportional weightings. How can degressive proportionality be justified? And does this justification provide us any guidance as to how these weights should be set? A correct understanding of Rousseau’s misgivings about the formation of factions will hold the key to these questions. (shrink)

I provide a novel argument in favour of majority rule. In particular, I consider the distribution of voter satisfaction in response to the outcome of a vote and prove that under certain conditions majority rule minimizes the level of inequality present in the distribution of voter satisfaction. This finding is reinforced by a computer simulation as well as an analysis of over four decades of polling data. Results complement existing procedural justifications of majority rule, demonstrating that majority rule ensures equality (...) at the level of both procedure and outcome. (shrink)

A federal assembly consists of a number of representatives for each of the nations (states, Länder, cantons,...) that make up the federation. How many representatives should each nation receive? What makes this issue worth quibbling about is that the model of representation that is instituted will have an impact on the welfare distribution over the nations in the federation that will ensue over due course. We will investigate what models of representation yield welfare distributions that score higher on a utilitarian (...) measure. First, we construct a continuum of models of representation ranging from equal to proportional representation. In between these extremes are models of degressive proportionality. We run a Monte-Carlo simulation in which a large number of motions are voted up or down within different contexts of evaluation and investigate how well the resulting welfare distributions score on the utilitarian measure. Subsequently, we will provide matching analytical results for a slightly idealized case. We conclude with a discussion of the significance of our results and of the role of simulations and analytical results and point to further work. (shrink)

The choice of a social decision rule for a federal assembly affects the welfare distribution within the federation. But which decision rules can be recommended on welfarist grounds? In this paper, we focus on two welfarist desiderata, viz. (i) maximizing the expected utility of the whole federation and (ii) equalizing the expected utilities of people from different states in the federation. We consider the European Union as an example, set up a probabilistic model of decision making and explore how different (...) decision rules fare with regard to the desiderata. We start with a default model, where the interests, and therefore the votes of the different states are not correlated. This default model is then abandoned in favor of models with correlations. We perform computer simulations and find that decision rules with a low acceptance threshold do generally better in terms of desideratum (i), whereas the rules presented in the Accession Treaty and in the (still unratified) Constitution of the European Union tend to do better in terms of desideratum (ii). The ranking obtained regarding desideratum (i) is fairly stable across different correlation patterns. (shrink)