Beviá, C., L. Corchón, A. Romero-Medina
Social Choice and Welfare – Forthcoming
Abstract: This paper focus on the dynamics of organizations and how they design its future according to the interest of their members. Agents are grouped into three classes, high, medium and low productivity. We analyze the evolution of organizations which take decisions by majority voting. We focus on the evolution of the political power and show that in some cases, rational agents who valuate the future may yield political power to other class. This is what we call the relinquish effect. We show that exploitation is possible in democratic societies and study its determinants. We also show that high productivity agents may be left in the cold because their entrance in an organization may threaten the dominance of other classes. We call this political unemployment.