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2. Consider a society with three people (Atakan, Feyza and Nedim) who is trying to decide how much money to spend on schools. There are

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2. Consider a society with three people (Atakan, Feyza and Nedim) who is trying to decide how much money to spend on schools. There are three options for spending on schools: H (High), M (Medium) or L (Low). These individuals rank the three options in the following way Rank 1 2 3 Atakan M L H Feyza L M H Nedim H M L (a) Would majority voting bring about a decision on how much to spend on schools? Explain why (b) Plot the preference mapping of each individual and propose an alternative voting mechanism. Did your proposed mechanism lead to a stable outcome on spending on the schools? Would giving one person the ability to set the agenda affect the outcome? Explain (c) Now suppose Feyza's preference ordering changed to the following: first choice-L. second choice H and third choice=M. Would your proposed rule in (b) lead to a stable outcome? If it did why? If it did not why not? 2. Consider a society with three people (Atakan, Feyza and Nedim) who is trying to decide how much money to spend on schools. There are three options for spending on schools: H (High), M (Medium) or L (Low). These individuals rank the three options in the following way Rank 1 2 3 Atakan M L H Feyza L M H Nedim H M L (a) Would majority voting bring about a decision on how much to spend on schools? Explain why (b) Plot the preference mapping of each individual and propose an alternative voting mechanism. Did your proposed mechanism lead to a stable outcome on spending on the schools? Would giving one person the ability to set the agenda affect the outcome? Explain (c) Now suppose Feyza's preference ordering changed to the following: first choice-L. second choice H and third choice=M. Would your proposed rule in (b) lead to a stable outcome? If it did why? If it did not why not

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