Ask Question, Ask an Expert


Ask Public Economics Expert

problem1) Consider a group with 11 members needs to make a choice from three alternatives: L, M and H. The individual preferences are given by: 2 members strictly prefer L to M to H, 4 members strictly prefer M to L to H, 2 members strictly prefer H toM to L, and 3 members strictly prefer H to L toM.

(i) What is the group preference according to the plurality rule?

(ii) What is the group choice according to the plurality rule with runoff?

(iii) Are the members' preferences in this group single-peaked preferences? Justify your answers. (That is, for every possible order of the three alternative, determine whether all individuals' preferences are single-peaked - if all individuals' preferences are single-peaked for some order, then the preferences in problem are single-peaked; otherwise the preferences in problem are not single peaked.)

problem2)Consider a situation of electoral competition in which candidates choose a position on government spending to allocate to national defense. The alternatives are various percentage of the (fixed) budget (any point in the interval [0; 100]). Voters' preferences are single-peaked, and their ideal percentage is distributed according to the following: 60% of the voters' ideal point is 10 (that is, 60% voters think it's best to spend 10 percent of government budget to defense), 30% of the voters have ideal point of 25, and the rest 10% voters have ideal point of 50. Suppose that all voters care equally about policy differences to the left and right of their ideal point (they have symmetric single-peaked preferences). Voters are sincere and will vote for the candidate with position closest to his/her ideal point, and if two or more candidates have the same position, they split the votes equally.

(i) Suppose that there are two candidates competing for once. What position(s) will the two candidates choose?

(ii) Now suppose that there are three candidates but one of them is non-strategic and takes a fixed position located at 50. For the two strategic candidates, do the position choices in (i) still constitute a Nash equilibrium? (That is, given 2 the position choice of one candidate, is the other candidate's position his/her optimal choice?)

problem3) You would like to buy a used car. Suppose there are three types of quality (a): low (a = 0), medium (a = 1) and high (a = 2), each equally likely (i.e. each with probability 1/3 ). Only the seller knows the exact quality of his/her car. Also suppose (as in class) that for any quality of the car, your utility is 1.5 times the seller's utility, that is, for a car of quality a, the seller's utility from it is a, but your utility from it is 1:5a.

(i) The market price for a used car is p. For what values of p, all three types of sellers want to sell? For what values of p, exactly two types want to sell? For what values of p, only one type wants to sell?

(ii) Is there any price at which trade is mutually agreeable? Namely, given your answers in (i), is there any price at which you want to buy a used car?

(iii) Suppose you have help from a mechanic, so now you can tell whether a car is low quality, but cannot tell between medium and high quality cars. Is there any price at which trade is mutually agreeable? If yes, give an ex of such a price; if no, describe why. Justify your answers.

Public Economics, Economics

  • Category:- Public Economics
  • Reference No.:- M93560
  • Price:- $45

Guranteed 36 Hours Delivery, In Price:- $45

Have any Question? 

Related Questions in Public Economics

Markets and the economics of the public sectoryou have been

Markets and the Economics of the Public Sector You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should ad ...

Homeworkscholarly activitythis unit asks you to think about

Homework Scholarly Activity This unit asks you to think about your own culture in terms of norms, values, beliefs, and behaviors. The unit also asksyou to think about those agents of socialization most closely related to ...

Homeworkselect a publicly traded organization that you have

Homework Select a publicly traded organization that you have not used previously in this course. (Can't use Apple, Microsoft, Walmart, and PepsiCo) Discussion Analyze the execution strategy for the SBU you selected. • Wh ...

Section achoose three out of the four short questions below

SECTION A: Choose Three out of the four short questions below. All questions are marked equally. 1. Prove that when voters are strategic in their voting behavior (no ab-stention allowed and two or more candidates are com ...

Case study structure -assessment tasksmajor assessment

Case Study Structure -Assessment Tasks Major Assessment: Submission of a Case Study Report The assessment is based on the preparation and submission of a major Case Study of an engineering or technology based organisatio ...

Assignment 1prepare your responses to these assignment

Assignment 1 Prepare your responses to these assignment problems in a word processing file; put financial data in a spreadsheet file. As you complete the assignment problems for each lesson, add your responses to these f ...

Public sectorconcern among the public sector is the demand

Public Sector Concern among the public sector is the demand for public organizations to be transparent about their budgets and spending habits. You have been scheduled to conduct a presentation for the State Budgeting Co ...

Discussion questions the perils of obediencebrainstorm your

Discussion Questions: The Perils of Obedience Brainstorm your answers to the following questions. Be prepared to share your original ideas in a class discussion. 1. How far were most people willing to go to obey authorit ...

Homeworkwrite an essay of 1250-1500 words that describes

Homework Write an essay of 1,250-1,500 words that describes the change in the interpretation of the due process clause. Discuss whether or not the earlier interpretations gave the benefit of the doubt to government power ...

Assignmentfrom the weekly readings and first e-activity

Assignment From the weekly readings and first e-Activity, examine the major issues confronting the two public leaders and their leadership style of responding to the issues in question, and proposed financial reform. Pro ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate