TY - JOUR
T1 - A theory of unanimous jury voting with an ambiguous likelihood
AU - Fabrizi, Simona
AU - Lippert, Steffen
AU - Pan, Addison
AU - Ryan, Matthew
N1 - Funding Information:
This work was supported by the University of Auckland Faculty Research Development Fund (FRDF 2015-2017) and the Royal Society of New Zealand (Marsden Grant Number UOA1617, March 2017–Feb 2021). The funders had no role in the study and the decision to submit its findings for publication.
Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
PY - 2022/1/18
Y1 - 2022/1/18
N2 - We examine collective decision-making in a jury voting game under the unanimity rule when voters have ambiguous beliefs. Unlike in existing studies (Ellis in Theoretical Economics 11:865–895, 2016; Fabrizi et al., in: AUT Economics Working Paper, 2021; Ryan in Theory and Decision 90:543–577, 2021), the locus of ambiguity is the likelihood function (signal precision) rather than the prior. This significantly alters the properties of symmetric equilibria. While prior ambiguity may induce multiple equilibria (Fabrizi et al., in: AUT Economics Working Paper, 2021; Ryan in Theory and Decision 90:543–577, 2021) we show that, under likelihood ambiguity, there exists a unique non-trivial symmetric responsive equilibrium that takes the same form as in the absence of ambiguity (Feddersen and Pesendorfer in The American Political Science Review 92:23–35, 1998). Moreover, likelihood ambiguity partially offsets the pernicious effects of pivotality on decision quality: the frequency of Type I error (convicting the innocent) is typically lower than in the absence of ambiguity.
AB - We examine collective decision-making in a jury voting game under the unanimity rule when voters have ambiguous beliefs. Unlike in existing studies (Ellis in Theoretical Economics 11:865–895, 2016; Fabrizi et al., in: AUT Economics Working Paper, 2021; Ryan in Theory and Decision 90:543–577, 2021), the locus of ambiguity is the likelihood function (signal precision) rather than the prior. This significantly alters the properties of symmetric equilibria. While prior ambiguity may induce multiple equilibria (Fabrizi et al., in: AUT Economics Working Paper, 2021; Ryan in Theory and Decision 90:543–577, 2021) we show that, under likelihood ambiguity, there exists a unique non-trivial symmetric responsive equilibrium that takes the same form as in the absence of ambiguity (Feddersen and Pesendorfer in The American Political Science Review 92:23–35, 1998). Moreover, likelihood ambiguity partially offsets the pernicious effects of pivotality on decision quality: the frequency of Type I error (convicting the innocent) is typically lower than in the absence of ambiguity.
KW - Ambiguity
KW - Belief updating
KW - Pivotality
KW - Voting
UR - http://www.scopus.com/inward/record.url?scp=85123107997&partnerID=8YFLogxK
U2 - 10.1007/s11238-021-09857-6
DO - 10.1007/s11238-021-09857-6
M3 - Article
AN - SCOPUS:85123107997
SN - 0040-5833
VL - 93
SP - 399
EP - 425
JO - Theory and Decision
JF - Theory and Decision
IS - 3
ER -