Suppose your school is considering whether to spend $20 million building a new state-of-the-art recreation facility. All

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Suppose your school is considering whether to spend $20 million building a new state-of-the-art recreation facility. All of the students agree that the existing facility is in disrepair and that a new facility would be much nicer. Despite this, however, when students are asked to vote on whether they would like the school to build the new recreation facility, over 78 percent vote no. Why might such a large fraction of students vote no even though they all agree that a new recreation facility would be much nicer than the existing one?

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Principles Of Economics

ISBN: 9781266052309

8th Edition

Authors: Robert H. Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz

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