Question: 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

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 passage of each bill is as follows:

a. Which issues (if any) would pass if decided by majority rule? Is this the efficient out-come?
b. Which issues (if any) would pass if logrolling were allowed? Would logrolling improve efficiency? Would it result in the efficient outcome?
c. Suppose that it were legal for one voter to pay another to vote a certain way. Would allowing such side payments improve efficiency from part b? Would it result in the efficient outcome?
d. What amount of side payments would take place if paying for votes were allowed?

343 2 x612

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