posted on 2010-02-04, 14:36authored bySanjit Dhami, Ali al-Nowaihi
In standard political economy models, voters are 'self-interested' i.e. care only
about 'own' utility. However, the emerging evidence indicates that voters often
have 'other-regarding preferences'(ORP), i.e., in deciding among alternative policies
voters care about their payo¤s relative to others. We extend a widely used general
equilibrium framework in political economy to allow for voters with ORP, as in Fehr-
Schmidt (1999). In line with the evidence, these preferences allow voters to exhibit
'envy' and 'altruism', in addition to the standard concern for 'own utility'. We
give sufficient conditions for the existence of a Condorcet winner when voters have
ORP. This could open the way for an incorporation of ORP in a variety of political
economy models. Furthermore, as a corollary, we give more general conditions for
the existence of a Condorcet winner when voters have purely selfish preferences.