Question

Public Finance
Suppose a community is considering three projects: A, B, and C. The com-
munity consists of three voters: 1, 2, and 3. Table 1.3 shows their net benefits from each project:

from each project: Table 1.3: Benefit Matrix Project Voter 1 Voter 2 Voter 3 B 50 200 100 300 150 200 C -450 -100 500 . a. Plot the preferences of each voter on a graph. b. Do you expect any anomalies during a pairwise voting process? Why? . c. What do you suggest to do to overcome the anomalies you report in part (b)?

Answer 1

1. As per the given question, the table and graph represented based on each voter preferences.

Let us see the table and graph of each voter.

.

2. After observing the three-voter preference represented in the graph, the voter 3 is effective and showing a positive sign to get a net benefit from each project compared with the rest of voters. I didn’t expect the anomalies in this process because the other voters not to reach a standard point to get the benefits from each project.

3. we may observe the benefits of individual 3 voters among that voter 3 got good benefits from available projects. The next best get the benefits in between the voter 1 & 2 is Voter 1. Because the project A is getting good mark compares with rest of voters but failed to maintain the mark in rest of projects. In Voter 2 got a good sign in the Project B compare with rest of voters. So, I didn’t expect the anomalies in the available of 3 voters and respective with projects. In overall, the Voter 3 got good benefits in overall projects compare with the rest of them.