Maximal lotteries

Maximal lotteries are a tournament voting rule that elects the majority-preferred candidate if one exists,[1] and otherwise elects a candidate from the majority-preferred set by a randomized voting procedure.[1] The method selects the probability distribution (or linear combination) of candidates that a majority of voters would prefer to any other.[1]

Maximal lotteries satisfy a wide range of desirable properties, including satisfying all axioms of majority rule in the strongest sense: they elect the Condorcet winner with probability 1[1] and never elect candidates outside the Smith set.[1] Moreover, they satisfy reinforcement,[2] participation,[3] and independence of clones,[2] and are weakly group-strategyproof (see below). The social welfare function that top-ranks maximal lotteries is uniquely characterized by Arrow's independence of irrelevant alternatives and Pareto efficiency.[4]

Maximal lotteries do not satisfy the standard notion of strategyproofness, as shown by Gibbard's theorem. Maximal lotteries are also nonmonotonic in probabilities, i.e. it is possible for increasing the rank of a candidate to decrease their probability of winning.[5]

The support of maximal lotteries, which is known as the essential set[6] or the bipartisan set, has been studied in detail.[7][8]

  1. ^ a b c d e P. C. Fishburn. Probabilistic social choice based on simple voting comparisons. Review of Economic Studies, 51(4):683–692, 1984.
  2. ^ a b F. Brandl, F. Brandt, and H. G. Seedig. Consistent probabilistic social choice. Econometrica. 84(5), pages 1839-1880, 2016.
  3. ^ F. Brandl, F. Brandt, and J. Hofbauer. Welfare Maximization Entices Participation. Games and Economic Behavior. 14, pages 308-314, 2019.
  4. ^ F. Brandl and F. Brandt. Arrovian Aggregation of Convex Preferences. Econometrica. 88(2), pages 799-844, 2020.
  5. ^ Laslier, J.-F. Tournament solutions and majority voting Springer-Verlag, 1997.
  6. ^ B. Dutta and J.-F. Laslier. Comparison functions and choice correspondences. Social Choice and Welfare, 16: 513–532, 1999.
  7. ^ G. Laffond, J.-F. Laslier, and M. Le Breton. The bipartisan set of a tournament game. Games and Economic Behavior, 5(1):182–201, 1993.
  8. ^ F. Brandt, M. Brill, H. G. Seedig, and W. Suksompong. On the structure of stable tournament solutions. Economic Theory, 65(2):483–507, 2018.

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