Exam 10: Problems With Group Decision Making

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Discuss the theoretical constraints on democracy. What tensions necessarily arise if democracy is to be understood as a minimally fair method of converting the preferences of individual citizens into stable social outcomes?

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Theoretical constraints on democracy can be understood through various perspectives, including those of political philosophy, social science, and practical governance. One of the key tensions that necessarily arise when democracy is understood as a minimally fair method of converting individual preferences into stable social outcomes is the tension between majority rule and minority rights.

In a democratic system, the majority of citizens have the power to make decisions that affect the entire society. However, this can lead to the marginalization and oppression of minority groups if their rights and interests are not adequately protected. This tension between majority rule and minority rights is a fundamental challenge for democratic theory and practice.

Another theoretical constraint on democracy is the challenge of ensuring that the preferences of individual citizens are accurately represented and translated into stable social outcomes. This requires mechanisms for fair and inclusive participation, as well as safeguards against manipulation and distortion of preferences. In practice, this can be difficult to achieve, especially in large and diverse societies with complex social and political dynamics.

Furthermore, the tension between individual freedom and collective decision-making is another theoretical constraint on democracy. While democracy aims to empower individuals to have a say in the decisions that affect their lives, it also requires a degree of collective decision-making and compromise. Balancing these two principles can be challenging, especially when individual preferences conflict with the broader interests of society.

Overall, the theoretical constraints on democracy highlight the complex and often conflicting demands of fairness, representation, and stability. Addressing these tensions requires ongoing engagement with democratic theory and practice, as well as a commitment to upholding the principles of equality, justice, and freedom for all members of society.

What happens if we extend the logic of the median voter theorem to a multidimensional ideological space?

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According to Arrow, if a decision-making procedure met conditions P, I, and D, it could not also meet both the rationality assumption and condition U. What does this say about the fundamental trade-off that all political institutions must face?

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Kenneth Arrow's impossibility theorem, also known as Arrow's paradox, is a fundamental result in social choice theory and economics. Arrow's theorem states that when voters have three or more distinct alternatives (options), no rank-order electoral system can convert the ranked preferences of individuals into a community-wide (complete and transitive) ranking while also meeting a specified set of criteria. These criteria are often abbreviated as P, I, D, and U, along with the rationality assumption:

- P (Pareto efficiency): If every voter prefers one option over another, then the group ranking should do the same.
- I (Independence of irrelevant alternatives): The group ranking between any two alternatives should not be affected by individual preferences over other irrelevant alternatives.
- D (Non-dictatorship): The group preference should not be dictated by a single individual; no single voter possesses the power to always determine the group's preference.
- U (Unrestricted domain or universality): The voting system should accommodate any rational individual preferences among alternatives.
- Rationality assumption: The collective choice should be transitive and consistent.

According to Arrow, if a decision-making procedure met conditions P, I, and D, it could not also meet both the rationality assumption and condition U. This implies that there is a fundamental trade-off that all political institutions must face when designing a voting system or decision-making process. The trade-off is between creating a system that is fair, respects individual preferences, and is rational in its aggregation of those preferences.

In essence, Arrow's theorem suggests that it is impossible to design a decision-making process that perfectly reflects the will of the people in a fair and consistent manner. Any system that is devised must sacrifice at least one of the desirable criteria. This has profound implications for political institutions, as it means that they must decide which criteria are most important to uphold and which they are willing to compromise on.

For example, a political institution might prioritize the rationality of group choices and Pareto efficiency but may have to accept limitations on the universality of individual preferences. Alternatively, they might prioritize non-dictatorship and universality but face challenges in maintaining the rationality of collective decisions.

In summary, Arrow's theorem highlights the inherent difficulties in creating a perfect decision-making system and forces political institutions to acknowledge and navigate the trade-offs between different democratic ideals.

Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right). Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as "office-seeking" parties since they only care about winning the election and getting into office. Figure 1: Illustrating the Median Voter Theorem Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right). Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as office-seeking parties since they only care about winning the election and getting into office. Figure 1: Illustrating the Median Voter Theorem    -What is the ideological position of the median voter in Figure 1? -What is the ideological position of the median voter in Figure 1?

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assume that Councillor 3 has to take a family member to the emergency room and has a very poor experience with the level of medical care provided at the local hospital. This leads her to view improving medical care as a higher priority than improving education in the municipality, if money is to be spent improving any programs. Councillors 1 and 2 do not change their preference orderings. Thus, the councillors now have the following preference orderings over the spending choices: Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Medical \succ Education Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions. -Which of the outcomes, if any, is a Condorcet winner?

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Consider the following preference orderings. Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Education \succ Medical If Councillor 1 gets to be the agenda setter and choose the ordering in which the three councillors vote over the alternatives, which of the following agendas should she set in order to get her most-preferred outcome?

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What is Codorcet's paradox?

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Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right). Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as "office-seeking" parties since they only care about winning the election and getting into office. Figure 1: Illustrating the Median Voter Theorem Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right). Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as office-seeking parties since they only care about winning the election and getting into office. Figure 1: Illustrating the Median Voter Theorem    -Let's suppose that P<sub>1</sub> locates at Position 2 on the left-right issue dimension and that P<sub>2 </sub>locates at Position 7. Who wins the election in the situation illustrated by Figure 1? -Let's suppose that P1 locates at Position 2 on the left-right issue dimension and that P2 locates at Position 7. Who wins the election in the situation illustrated by Figure 1?

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Imagine that three city council members are trying to decide how to spend a surplus. The options currently being debated are (i) spend it on improving primary education in the municipality, (ii) spend it on improving the level of medical care offered by the local hospital, or (iii) lower local taxes and use the surplus to cover the costs of existing programs. The council employs majority rule to make its decisions. The councillors have the following preference orderings over the spending choices: Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Education \succ Medical Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions. -Given the preference orderings listed above, what would the result be of a pair-wise contest between the spending choices education and medical?

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Which of the following conditions are included in the set of fairness conditions that Arrow thought any minimally fair decision-making procedure should satisfy?

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If a voter chooses an alternative that is not her most preferred one because by doing so she can produce a more preferred final outcome than might otherwise be the case, then she is engaging in:

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assume that Councillor 3 has to take a family member to the emergency room and has a very poor experience with the level of medical care provided at the local hospital. This leads her to view improving medical care as a higher priority than improving education in the municipality, if money is to be spent improving any programs. Councillors 1 and 2 do not change their preference orderings. Thus, the councillors now have the following preference orderings over the spending choices: Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Medical \succ Education Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions. -Given the preference orderings listed above, what would the result be of a pair-wise contest between the spending choices medical and tax cut?

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assume that Councillor 3 has to take a family member to the emergency room and has a very poor experience with the level of medical care provided at the local hospital. This leads her to view improving medical care as a higher priority than improving education in the municipality, if money is to be spent improving any programs. Councillors 1 and 2 do not change their preference orderings. Thus, the councillors now have the following preference orderings over the spending choices: Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Medical \succ Education Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions. -Given the preference orderings listed above, what would the result be of a pair-wise contest between the spending choices education and medical?

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As the number of individuals and/or the number of alternatives involved in any decision-making situation increase, what happens to the likelihood of group intransitivity?

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From the point of view of someone trying to design the ideal set of decision-making rules, the key characteristic of the Borda Count that is troubling is that:

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Suppose that some event occurs that causes several voters to adopt more centrist positions on the left-right issue dimension. The new distribution of voters is shown in Figure 2. Figure 2: Illustrating the Median Voter Theorem-A Centrist Electorate Suppose that some event occurs that causes several voters to adopt more centrist positions on the left-right issue dimension. The new distribution of voters is shown in Figure 2. Figure 2: Illustrating the Median Voter Theorem-A Centrist Electorate    -Given the centrist nature of the distribution of voters in Figure 2, where will parties P<sub>1</sub> and P<sub>2</sub> locate in the left-right space? -Given the centrist nature of the distribution of voters in Figure 2, where will parties P1 and P2 locate in the left-right space?

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What's the difference between a preference ordering and a utility function?

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Describe, in your own words, each of the conditions in Arrow's Impossibility Theorem.

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Imagine that three city council members are trying to decide how to spend a surplus. The options currently being debated are (i) spend it on improving primary education in the municipality, (ii) spend it on improving the level of medical care offered by the local hospital, or (iii) lower local taxes and use the surplus to cover the costs of existing programs. The council employs majority rule to make its decisions. The councillors have the following preference orderings over the spending choices: Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Education \succ Medical Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions. -Given the preference orderings listed above, what would the result be of a pair-wise contest between the spending choices tax cut and education?

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Imagine that three city council members are trying to decide how to spend a surplus. The options currently being debated are (i) spend it on improving primary education in the municipality, (ii) spend it on improving the level of medical care offered by the local hospital, or (iii) lower local taxes and use the surplus to cover the costs of existing programs. The council employs majority rule to make its decisions. The councillors have the following preference orderings over the spending choices: Councillor 1: Education \succ Medical \succ Tax cut Councillor 2: Medical \succ Tax cut \succ Education Councillor 3: Tax cut \succ Education \succ Medical Assume that the councillors hold a round-robin tournament that pits each alternative against every other alternative in a series of pair-wise votes. The winner is the alternative that wins the most contests. Based on this information, answer the following four questions. -Given the preference orderings listed above, what would the result be of a pair-wise contest between the spending choices medical and tax cut?

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