Exam 17: Conflict, Negotiation and Group Choice

Assume that the characteristic functions for individuals 1,2, and 3 are given by V(1) = $20, V(2) = $16, and V(3) = $10 respectively, and value created by the coalition V(1,2,3) = $60.If the payoff to individual 1 is $30, and that to individuals 2 and 3 is $15 each, which of the following statements is true?

The median voter model and the borda count are different names for the same methods of reaching a group decision.

Public goods are characterized by the:

Identify some of the salient features of voting as a method of determining the majority preference.

The utility possibility frontier helps to predict the exact bargain two parties will arrive at.

When parties are risk averse, cases with more at stake are less likely to settle outside court.

What characteristics distinguish private goods from public goods?

Assume that the characteristic function of a coalition between three individuals named 1,2, and 3 is V(1,2,3) = $60; while V(1) = $20, V(2) = $16, and V(3) = $10, where V(i) is the value created by individual i.Which of the following allocations will lie within the core?

_____ is a process in which parties initially in disagreement attempt to reach an agreement.

When the core is empty, the proposals and counter proposals of the individuals can cycle without ever settling into an unblockable allocation.

There is no mechanism of collective choice that is always immune to misrepresentation of preferences by voters.

Differentiate between norms and focal points.

A conclusion from the study of automobile markets by Allen Jung of the University of Chicago was that:

Economic reasoning suggests that individuals should spend little time learning about election candidates and other electoral issues because:

Identify the disadvantage of public goods.

A, B, and C have the following preferences for fruits: A: apples > bananas > peaches > pineapples B: bananas > apples > pineapples > peaches C: apples > pineapples > peaches > bananas Use the Borda Count method to determine the most preferred fruit.

Zach and Laura want to buy cars and go to the same dealer.The dealer perceives Zach's price elasticity of demand to be lower than Laura's.Which of the following statements will be true?

A and B form a coalition and share the value of the payoffs it produces.Their coalition is individually rational if:

What is a utility possibility frontier?

Terry wants to sell his car and the lowest price he is willing to accept is $3,000.Alice likes the car and is willing to pay at most $4,000 for it.What is the headroom for them?