Question

4. Three voters, A, B, and C, will decide by majority rule whether to pass bills...

4. Three voters, A, B, and C, will decide by majority rule whether to pass bills on issues X and Y. Each of the two issues will be voted on separately. The change in net benefits (in dollars) that would result from the passage of each bill is as follows:

Issue

Voter

X

Y

A

+6

-3

B

-1

+4

C

-2

-3


a. Which issues (if any) would pass if decided by majority rule? Is this an efficient outcome?

b. Which issues (if any) would pass if logrolling were allowed? Would logrolling improve efficiency? Would it result on an efficient outcome?

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Homework Answers

Answer #1

Solution:

A) Neither issue would pass with majority voting as in both cases, two votes of three would vote against the each issue because they receive negative net benefits. this is not efficient because issue x has a positive total net benefit and should be funded.

B) With logrolling voters A and B can trade votes. A will vote for issue Y if B votes for issue x but C will not for either project. Both issue pass with two votes for and one against. This is not efficient because issue Y has a negative total net benefit.

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