Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 22, Problem 6PA
Subpart (a):
To determine
Application of Borda count and Arrow’s impossibility theorem.
Subpart (b):
To determine
Application of Borda count and Arrow’s impossibility theorem.
Subpart (c):
To determine
Application of Borda count and Arrow’s impossibility theorem.
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Ana, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first choice and then vote on the options. Their first choice, second choice, and third choice preferences are as shown in the following table.
Circular preferences
1st Choice
2nd Choice
3rd Choice
Ana
Beach
Mountain Biking
Canoeing
Emma
Mountain Biking
Canoeing
Beach
Greta
Canoeing
Beach
Mountain Biking
Based on the table explain why they will have a hard time reaching a decision. Do they prefer mountain biking to canoeing? What about canoeing compared to the beach? What about the beach compared to the original choice of mountain biking?
Two friends are deciding where to go for dinner. There are three choices, which we label A, B, and C.
Max prefers A to B to C. Sally prefers B to A to C.
To decide which restaurant to go to, the friends adopt the following procedure:
First, Max eliminates one of three choices.
Then, Sally decides among the two remaining choices.
Thus, Max has three strategies (eliminate A, eliminate B, and eliminate C). For each of those strategies, Sally has two choices (choose among the two remaining).
a.Write down the extensive form (game tree) to represent this game.
b.If Max acts non-strategically, and makes a decision in the first period to eliminate his least desirable choice, what will the final decision be?
c.What is the subgame-perfect equilibrium of the above game?
d. Does your answer in b. differ from your answer in c.? Explain why or why not.
Only typed Answer
Chapter 22 Solutions
Principles of Microeconomics (MindTap Course List)
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