In this paper, we relax one of the central assumptions in game theory:
that agents’ payoffs are exogenously determined by the outcomes of the
game. We develop a methodology in which agents’ payoffs in a game are
partly determined by endogenously generated preferences over actions. In
order to predict outcomes we develop a solution concept we call consistency
linking agents’ preferences with actual behavior in a manner analogous to
Nash equilibrium. We use this methodology to analyze a model of participation
in elections in which voting is costly and no vote is ever pivotal.
The resulting model delivers high turnout and comparative statics that are
consistent with strategic behaviour.