Tag Archives: Condorcet winner

How do these numbers compare to the numbers chosen by a benevolent central planner who chooses G and c1, c2, c3 so as to maximize the sum of utilities?

Question 1. This question asks whether voting can play a role in solving free-riding problems in public good provision, and if so why. Imagine a small economy composed of three individuals, 1, 2, and 3. Each of them has utility function: Ui = ln(ci) + i 2 ln(G) where i ∈ {1, 2, 3}, ci […]