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Unformatted text preview: ) Majority rule explains why politicians appeal to the middle of the voting distribution.
(b) Based on studies of human decision making, most people prefer to procrastinate, both in
the immediate future and in the distant future.
(c) Screening refers to an uninformed party trying to extract information from an informed
(d) Advertising can be an example of a company signaling the quality of its products. ( %):
, , . ( %) (X) (Y) , , , , , (a) ( %)
(b) ( %) ? (c) ( %) , ,
? (Hint: )?
. ( %) , (a) ( %) , , (pairwise voting scheme),
, (b) ( %) , ? , , . ( %) ? (Adverse selection) (a) ( %) (Moral hazard)?
, , (b) ( %) , , , , , ,
(c) ( %) , ,
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This document was uploaded on 03/21/2014.
- Spring '14