Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NOTE: 1 and 2 are worth 6 points each and 3 is worth 4 points Two distinct proposals, A and B, are being debated in

NOTE: 1 and 2 are worth 6 points each and 3 is worth 4 points

Two distinct proposals, A and B, are being debated in Washington. The Congress likes proposal A, and the President likes proposal B.The proposals are not mutually exclusive, either or both or neither may become law. Thus, there are four possible outcomes and the rankings of the two sides are as follows, where a larger number represents a more favored outcome.

Outcome Congress President

A becomes law

4 1

B becomes law

1 4

Both A and B become law

3 3

Neither A or B become law

2 2

  1. The moves in the game are as follows. First, the Congress decides whether or not to pass a bill and whether it is to contain A or B or both.Then the President decides whether to sign or veto the bill. Congress does not have enough votes to override a veto. Draw a tree and determine the equilibrium result.
  2. Now suppose the rules of the game are changed in only one respect: the President is given the extra power of a line-item veto. Thus, if Congress passes a bill containing both A and B, the President may choose to not only sign or veto the bill as a whole, but also to veto one of the items.(As before, Congress does not have enough votes to overturn a veto.) Draw a tree for this game and find the equilibrium.
  3. Explain why the different results for (a) and (b) make sense.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing

Authors: Philip Cateora

16th Edition

0073529974, 9780073529974

More Books

Students also viewed these Economics questions

Question

How does the concept of hegemony relate to culture?

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago

Question

The quality of the proposed ideas

Answered: 1 week ago