2-3. Other Competitive Games
Chicken game (Hawk-Dove)
Assurance game (Stag Hunt)
The Battle of the Sexes game
Williams, Chapter 6 only sections D-E-F pages 102-110.
Poundstone, Prisoners Dilemma, Chapters 10-11.
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Analytical Tools for Political Economy
Table of Contents
The Social Choice Idea
Social Welfare Aggregation
Identifying the Basic Problem
Social Welfare Functions
Axiomatic approach to Social Rationality
The basic idea: specify fundamental desiderata that you want your social
welfare function Wu to satisfy.
PECO 201 Analytical Tools for Political Economy Module 1
Prof. Josep Colomer
Prof. Roger Lagunof
[email protected][email protected]
Office hours: Tues. 4pm or by appointment
Office: ICC 588
Office hours: Tues. 1-2pm until 10/22,
thereafter, or by appointment.
Office: ICC 573
Candidates with Policy Preferences in the HD Model
Candidate j = A, B has a preference
candidate j is elected
(xk j )2
Uj (x) =
(xj j )2 + if
candidate k = j is elected instead
Case 1: A < M < B .
Then both locate at the median!
Study Guide for PECO Assignment 1
Tax and Rank
A tax authority must decide on a social insurance scheme. It
knows that half the population will unemployed this year with only
$400 in income from odd jobs. The other hal
A republic, if you can keep it.
A lady asked Dr. [Benjamin] Franklin, Well Doctor what have
we got, a republic or a monarchy? A republic, replied the
Doctor, if you can keep it. (McHenry, The American
I = cfw_1, . . . , n a society of n people/citizens, indexed by i.
A consumption bundle. x = (x 1 , x 2 , . . . , x ). Here, there are
ui (x) - the utility of person i for bundle x. Writing ui (x
Social Choice Rules
To study behavior we need to consider social choices not social rankings.
A social choice rule is a mapping C that maps from preference proles u
to social choices in A. We write C (u) = x to mean that society s
Political Economy 201: Assignment 2
1. Suppose that the Georgetown Chess Club must vote on a restaurant to celebrate its championship in the World College Chess Tournament. Being a logical group it rst sets a particular
Political Economy 201: Assignment 1
1. A tax authority must decide on a tax and transfer scheme. It knows that half the population
will be unemployed this year with only $400 in income from odd jobs. The other half will