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:

                                                            Issue
           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
what is multinational? how can they help developing economies?



Read the titled book 2010 State of the World: Transforming Cultures from Consumerism to Sustainability written by the Worldwatch Institute.Learn through their findings valuable inf

In the context of hospital care, explain and distinguish between occupancy rate, capacity, and utilization.

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Question 1 Legislature, most commonly known by the name parliament, forms the first important organ of a political organization and to hold this position it performs certain func

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Case for the Market   With  the objective of maximising total value of output  focused on  observing real  factors of production, through the  logical  'tool  of marginal produ

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4