Social choice mechanism, Strategic Management

Assume a city of 1 million people, 75% of who are willing to pay $1 maximum (each) to clean up pollution. The rest of the population is willing to pay $100 each to clean up pollution. Clean-up costs $3 million. It has been proposed that each person be taxed equally to pay for the pollution clean-up.

a) Will such regulation pass a majority rule?

b) Is it desirable from the point of view of the Pareto criterion?

c) Is it a good idea using the compensation principle?

d) Which social choice mechanism do you think is best on intuitive grounds and why?

Posted Date: 2/19/2013 6:47:45 AM | Location : United States

Related Discussions:- Social choice mechanism, Assignment Help, Ask Question on Social choice mechanism, Get Answer, Expert's Help, Social choice mechanism Discussions

Write discussion on Social choice mechanism
Your posts are moderated
Related Questions
C.M. is a 28-year-old woman with a long history of dysmenorrhea managed for many years with oral contraceptives. She stopped taking the pill 8 months ago in anticipation of becomin

You are an asset manager for a large public utility organisation. The organisation has a range of assets, ranging from major distributors to minor assets directly serving users (fo

Q. What is Uncontrollable costs ? Uncontrollable costs General apportioned fixed overhead e.g. group overhead allocated or apportioned to divisions, which would not b

Q. Explain about hopwood’s Self-control? Self-regulation e.g. members of staff or managers exerting self-control by the modification of their own behaviour.  This is essence de

A squeeze on credit fall in house prices and tumbling stock markets are all reinforcing a slump in consumer confidence, consumption and investment in the EU FS sector. In order to

Q. Illustration of extrinsic reward? Monetary reward is an illustration of extrinsic reward and considered as the most important of all 'hygiene factors' according to Frederick

1. Unions quite frequently oppose the time study because the accuracy of time study is overly dependent upon the skill and judgment of the time study man. The time

The group consolidated financial results would normally be effected, if an internal buyer uses their autonomy and makes a decision to buy outside the group, rather than buy interna

Q. Show the example on residual income? Division A makes and sells a single product and is assessed by the residual income it earns, the head office of the group uses a 10% cos

Problems of profit based measures -  Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed. -