A society is composed of 3 individuals named 1, 50, and 100. There are three alternatives:...

 

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A society is composed of 3 individuals named 1, 50, and 100. There are three alternatives: 2, 60, and 90. For each individual i € {1,50, 100}, her utility from alternative A = {2, 60, 90} is given by u² (A) = -|i - Al where x is the absolute value of x. 2.1 How does each individual rank the three alternatives? 2.2 Which alternatives are Pareto efficient? Which alternatives maximize social surplus, i.e., u² (A)? Σ i {1,50,100} Assume that voters vote sincerely. 2.4 Consider a majority vote between alternatives 2 and 60. Which alternative would win? 2.5 Consider a majority vote between alternatives 60 and 90. Which alternative would win? 2.6 Consider a majority vote between alternatives 2 and 90. Which alternative would win? 2.7 Suppose we used the Open Agenda Method. Which alternative would be chosen? A society is composed of 3 individuals named 1, 50, and 100. There are three alternatives: 2, 60, and 90. For each individual i € {1,50, 100}, her utility from alternative A = {2, 60, 90} is given by u² (A) = -|i - Al where x is the absolute value of x. 2.1 How does each individual rank the three alternatives? 2.2 Which alternatives are Pareto efficient? Which alternatives maximize social surplus, i.e., u² (A)? Σ i {1,50,100} Assume that voters vote sincerely. 2.4 Consider a majority vote between alternatives 2 and 60. Which alternative would win? 2.5 Consider a majority vote between alternatives 60 and 90. Which alternative would win? 2.6 Consider a majority vote between alternatives 2 and 90. Which alternative would win? 2.7 Suppose we used the Open Agenda Method. Which alternative would be chosen?

Answer rating: 100% (QA)

Based on the provided utility function uiA i A we can answer each of the questions as follows 21 How does each individual rank the three alternatives ... View the full answer