Institutions for collective decisionmaking often defer to the status quo, granting it a privileged position relative to proposed policy innovations. The possible benefits of status quo deference must be weighed against a cost: status quo deference can prevent a society from learning the merits of innovations. This paper explores the potential for learning through adaptive diversification of treatment choice in decision systems that feature status quo deference. I first reviewthe basic elements of my earlier analysis of adaptive diversification by a planner and then extend the analysis to two collective decision processes, voting and bilateral negotiation.
|Original language||English (US)|
|Number of pages||13|
|Journal||Journal of Institutional and Theoretical Economics|
|State||Published - Mar 1 2013|
ASJC Scopus subject areas
- Economics and Econometrics