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Jacques, Musashi, and Sean are roommates who are ng to decide how much money to spend on heat in their apartment each month

Economics Nov 26, 2020


Jacques, Musashi, and Sean are roommates who are ng to decide how much money to spend on heat in their apartment each month. 
• Jacques hates being cold. Therefore, he would ideally like each to contribute $55 to heat, and his utility is constantly declining as they decrease the amount of money they spend. 
• Sean does not care about heat and is on a tight budget. Therefore, he prefers to contribute no money to heat, and his utility is constantly declining as they increase the amount of money they spend. 
• Musashi would ideally contribute $15. However, he would prefer contributing $55 to contributing $0 because he does not want to 
freeze. 
Suppose the three roommates vote on spending either $0, $15, or $55 on heat using the Borda count system of voting. That is, each roommate awards three points to his first choice, two points to his second choice, and one point to his third choice. 

 

Complete the following table by indicating the number of points each roommate awards to each option to obtain a final ranking.
Borda Count For Spending
Jacques Musashi Sean Total
$15 $0 $55

Under a system of Borda count, the winning option is ?
 If, instead, the roommates were to hold a two-phase election (such that they first voted between two options, then voted between the winner of that  contest and the final option), the winner would be ? (Hint: Determine the outcome if the roommates first voted between $55 and $0, and  then voted between the winner of that contest and $15.) 
The median voter in this situation is  ?

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