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Choices for first three blanks: are/are not Choice for last blank: is/is not 12. Preferences and Condorcet winners Brian, Edison, and Kevin are roommates who
Choices for first three blanks: are/are not
Choice for last blank: is/is not
12. Preferences and Condorcet winners Brian, Edison, and Kevin are roommates who are trying to decide how much money each should contribute to a party they are throwing. Edison would ideally contribute $20 because he only wants to buy pizza, but he would prefer contributing $50 to $0 because he doesn't have any other parties to go to if they don't throw one. His utility, therefore, increases from $0 up until they are each contributing $20, at which point his utility from additional spending on the party begins to decline. Edison's preferences for spending on the party Kevin does not care about the party and is on a tight budget; therefore, he prefers to contribute no money to the party, and his utility is constantly declining as they increase the amount of money they spend. Kevin's preferences single peaked. Brian wants to buy $90 worth of beer and $60 worth of pizza; therefore, he would ideally like each to contribute $50 to the party. If they decide to contribute less than $30 each, he won't really enjoy the party, since he thinks a good party requires, at minimum, $90 worth of beer. Thus, he prefers contributing no money to the party to contributing any amount between $0 and $30 (because in going from $0 to $30, the amount he pays increases, but he doesn't get much benefit from being at the party if there is no beer). Brian's preferences single peaked. Suppose the three roommates vote on purchasing either $0,$20, or $50 on the party. Among these proposals thereStep by Step Solution
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