Assigment 2 Q+A

# The reason is that a0 which is the status quo is

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Unformatted text preview: he possible outcomes are A0, A1 and AG. This outcome will depend on AG: 1) If the policy preferred by the speaker of the House (AG) is placed at the left of A0, he will not even propose it as the floor will reject it for sure. The reason is that A0, which is the status quo, is closer to the policy preferred by the median legislator (AM). 2) The second option is that AG is between A0 and A1, in that case, the proposal would be accepted by the floor no matter where this offer is located. Hence, the speaker would propose AG, which will be the final outcome. 3) The third and final option is that the speaker proposal is placed at the right of A1. In that case, as he knows the floor preferences, he will simply propose A1 as is as preferred as the status quo by the floor. Hence, the outcome will be A1. So as a conclusion, the unique possible outcomes are A0, AG and A1. The only case in which AM would be the outcome will be if AG=AM (speaker proposal is equal to median legislator preferences). Open Rule The difference between the closed an open rule is that the speaker of the house can propose a policy and the floor can make amendments to it. A0 1 B AM A1 Once again, the outcome will depend on AG: 1) If AG is located on the left of A0, the speaker would not propose anything. The reason is that if he proposes, the floor would make amendments on it and the distance between AG and the outcome would increase. As we assume that all the players are rational and perfectly know other playersâ€™ preferences, the speaker would not propose anything and the outcome will be A0. 2) The second option is that AG is located between A0 and AM. There we could have two outcomes, which will depend on where AG is exactly located. If AG is located between A0 a...
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## This document was uploaded on 03/10/2014 for the course AECO 1330A at Sciences Po.

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