Optimization of Majority Rule for Consensus Building:Resolution for Rehabilitation of Condominiums

概要

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This paper examines the optimal majority rule and amount of social loss for consensus building in the event of rehabilitation of condominiums, when there is a correlation among benefits of stakeholders. The results show that (1) simple majority rule is optima even when excess compensation is necessary and even when there is some resistance in agreement for rehabilitation;(2) the larger the correlation among the benefits of stakeholders, the larger social loss may incur by having stricter majority rule;(3) the number of stakeholders does not influence so much concerning the optimal majority rule. These results suggesthat the 4/5 majority rule in current sectional ownership law should be amended to a simple majority rule or similar mild majority rule.