Side payments, Public Economics

3 voters, A, B, and C, will decide by majority rule whether to pass bills on issues X and Y. Every of the two issues will be voted on indiviually. The change in net profits (in dollars) that would result from the passage of every bill is as follows:

           Voter                                    X                Y
              A                                     +6               -3                                    
              B                                     -1              +4
              C                                     -2               -3

1.    Which issues (if any) will pass if decided by majority rule? Is this the efficient outcome? And another question is which issues (if any) would pass if logrolling were permitted? Would logrolling improve efficiency? Would it result in the efficient outcome?

2.    Assume that it were legal for one voter to pay another voter to vote in a some way. Would permitting such side payments improve efficiency in part b? Would it result in the efficient outcome?

3.    What amount of side payments would take place if paying for votes were permitted?

Posted Date: 3/21/2013 1:39:42 AM | Location : United States

Related Discussions:- Side payments, Assignment Help, Ask Question on Side payments, Get Answer, Expert's Help, Side payments Discussions

Write discussion on Side payments
Your posts are moderated
Related Questions
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

A variety of interventions can affect outcomes. The important one are, intervention to solve coordination problem, information as an interventions, interventions to change the dyn

Theory of optimal tax system is relevant for tax policy issue

1. If GDP is not a good measure of economic well-being, why then it is always used by the president in his/her STATE OF THE NATION''S ADDRESS?

Valuation Tools - Hedonic Pricing Method Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What are the objectives of pubic finance

How does it work? how is its basic structure?

describe and illustrate the lm-schedule

Suppose a given demand curve for massage therapy services. In the context of giving massage therapy services, list, and explain in detail, 5 different variables that may cause an i