The Economics Seminar Series presents Dr. Krista Saral discussing "The Value of Consensus: An Experimental Analysis of Costly Pre-Vote Communication" on Friday, Nov. 13, from 3 to 4:15 p.m.

Saral is Associate Professor of Economics in the  Department of Economics  in the  Belk College of Business  at the  University of North Carolina at Charlotte .

For more information about the Economics Seminars, contact Dr. Roberto Duncan .

Abstract : Small groups tasked with making a collective decision often deliberate prior to taking a vote. Yet how a group reaches agreement depends on the voting institution in place and requiring a higher degree of consensus will likely influence the level of communication, particularly when communication is costly. Using a combination of theory and experiments we examine communication decisions and the resulting outcomes under three voting rules: simple majority rule, consensus unanimity, and veto unanimity. We also vary the cost of communication, and the presence of an “expert” in the group. In line with previous findings, under costless communication, we find that differences between outcomes across voting rules are minimized due to high levels of communication. In contrast, when communication is costly, differences in voting rules reemerge as communication is significantly reduced under majority rule and veto unanimity while remaining high under consensus unanimity. Experts increase communication, but not necessarily efficiency.

Duncan .