discussionqst4

# discussionqst4 - or less cars per unit time use the road...

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Discussion questions for March 23: 1. Discuss the paradox of voting using the following: Individual 1: cPb, bPa Individual 2: bPa, aPc Individual 3: aPc, cPb 2. Explain what a "Social Welfare Function" is. 3. An acceptable Social Welfare Function must satisfy certain postulates. a. Why is this important? b. State and explain the 5 postulates used by Vickrey. 4. Define a "decisive set." 5. Present and explain Vickrey's proof of Arrow's Theorem. Discussion questions for March 30: 1. Let there be two neighbors, A and B, and let both desire to build a fence between the two homes. The fence if it is over 5 feet tall will block A's view of the mountains; hence, A's utility will increase with fence height up to 5 feet but will decrease with increases in the height of the fence over 5 feet. B's utility, however, is posited to increase with height of the fence up to 10 feet. Is it possible that a Pareto efficient height of the fence will be built. Explain why of why not. 2. Let there be two cities connected by two roads. Road A is smooth and narrow, so that when 10
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