benevolent

Explain the economic rationale for the difference between the central planner’s solution and the decentralized, voluntary solution.

Political Economy – W4370 Fall 2022 Problem Set 7 Question 1. This question asks whether voting can play a role in solving free-riding problems in public good provision, and if so why. Imagine a small economy composed of three individuals, 1, 2, and 3. Each of them has utility function: Ui = ln(ci) + i […]

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