Suppose There Are 3 Voters in a Legislature, and Two

question 4

Essay

Suppose there are 3 voters in a legislature, and two projects are up for consideration.Project A creates benefits of 3 for district 1 but benefit of -1 in district 2 and -3 in district 3.Project B creates benefits of 3 in district 2, -1 in district 1 and -3 in district 3.
a.Would either of these projects be implemented under simple majority rule voting (where each project is approved or not approved on its own)?
b.How would your answer to (a) change if the projects can be bundled?
c.Is it efficient to fund these projects?
d.Suppose the Coase Theorem applies to legislatures -- i.e.suppose legislators can create alternatives with cash side-payments.What might voter 3 do to prevent the outcome in (b)?
e.True or False: If transactions costs are low and side-payments are allowed, only efficient projects will pass under vote trading.

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Definitions:

Fatty Substances

Organic compounds consisting largely of lipids, often playing crucial roles in energy storage, insulation, and cellular structure.

Darwin's Theory

A scientific theory developed by Charles Darwin that explains the diversity of life on Earth through the process of natural selection.

Evolutionary Change

A process through which organisms adapt and evolve over time due to genetic variations and environmental pressures.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass on those genes.