Elaborate toop in detail Exercise 1.12. Consider the following game. There is a club with three members:Ann, Bob and Carla. They have to choose which of the three is going to bepresident next year. Currently Ann is the president. Each member is both acandidate and a voter. Voting is as follows: each member votes for one candidate(voting for oneself is allowed); if two or more people vote for the same candidatethen that person is chosen as the next president; if there is complete disagreement,in the sense that there is exactly one vote for each candidate, then the person fromwhom Ann voted is selected as the next president.(a) Represent this voting procedure as a game frame, indicating inside each cell ofeach table which candidate is elected.(b) Assume that the players' preferences are as follows: Ann>Carla Bob Bob Bob Ann, Bob Carla> AnnCarlaCarla.AnnCarla Ann Bob,Using utility values 0, 1 and 2, convert the game frame into a game.(c) Apply the IDWDS to the game of part (b). Is there a weak iterated dominant-strategy equilibrium?(d) Does the extra power given to Ann (in the form of tie-breaking in case ofcomplete disagreement) benefit Ann?

(a) Representing the voting procedure as a game frame: AnnBobCarlaAnnAnn (Ann)Bob (Ann)Carla…

Answered: Exercise 1.12. Consider the following…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 7PA

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What are some alternatives to a first past the past system that might reduce the problem of voting cycles?
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Assume there are three voters: A, B and C. Voter preferences can be ranked along a left-to-right spectrum that ranges from 1-9; 1 being the most left leaning preference and 9 being the most right leaning preference. Suppose these voters will choose between candidates Smith and Jones in an upcoming election. Assuming the following voter preferences: True/False Explain: If the median voter theorem holds, candidates Smith and Jones will either both adopt preference 5 OR one will adopt preference 4 while the other adopts preference 6. B. Suppose the electorate becomes more polarized; A moves from 4 to 1 while C moves from 6 to 9. B remains at 4. How does the median voter model predict candidates Smith and Jones will change their preference? C. Keeping the assumptions from B, how does the election result change if a tax on non-voters doubles the number of voters while preserving the distribution of preferences? D. If the tax in C induces 100% compliance (everyone votes), did this tax…

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