Working Paper

On the Optimal Composition of Committees

Ruth Ben-Yashar, Leif Danziger
CESifo, Munich, 2014

CESifo Working Paper No. 4685

This paper derives a simple characterization of how to optimally divide an organization’s experts into different decision-making committees. The focus is on many three-member committees that make decisions by a simple majority rule. We find that the allocation of experts to committees is optimal if and only if it minimizes the sum of the products of the experts’ skills in each committee. As a result, given the experts of any two committees, the product of the experts’ skills should be as similar as possible in the two committees, and it is never optimal to have the three worst experts in one committee and the three best experts in another.

CESifo Category
Public Choice
Keywords: optimal composition of committees, simple majority rule
JEL Classification: D710