Why can people fail to coordinate on those actions that would benefit them all?
An old question: Hobbes's state of nature" and the necessity of a Leviathan
Hardin's tragedy of the commons
Collective Action Continued
OSTROM'S GOVERNING THE COMMONS"
Scholarly debate is missing a theory whereby people can organize them selves
voluntarily to retain the residuals of their own effort".
Common response t
An important result: Nash Equilibrium may not predict the Pareto Efficient outcome
Nash equilibrium may give multiple equilibrium in games of coordination (battle of the
Public Choice and Political Economy
HOMEWORK N. 2
Choose two of the following three essays. Each essay should be no longer than 1500
words. (approximately four pages)
1) The speaker of the Hou
Public goods, the
commons and collective
By Karin Fischer and Daro Rodrguez
What characterises them:
can enjoy them whether
they have paid or not.
Non-rival: the use by
one person does not
diminish the availabi
Game Theory Notes
What is Game Theory?
"Game theory (GT) can be defined as the study of mathematical models of conflict and
cooperation between intelligent rational decisionmakers. GT provides general
Public choice and political economy
Suppose we find mappings, by theoretical and empirical work,
between political institutions and policy choices. What do we
make of such results? Can we use them to make normative
recommendations for instit
The problem of preferences aggregation
Can we get a single collective decision (binding for everyone) from a set of individual
preferences? How can we map individual preferences into collective decisions?