Institutions and their role in political economy (session 2&3)

Question 1

Examples of Institutions

Answer 1

Electoral Rules, political parties, markets, property rights, marriage and family, morals and customs

Question 2

What do Institutions do?

Answer 2

1) constrain what is possible 2) Regulate interactions

Question 3

Majority Rule

Answer 3

Selects an alternative by holding sequential pair-wise majority comparisons (e.g. compare a vs b)

Question 4

Plurality

Answer 4

Most votes win (not Condorcet consistent, could choose CL)

Question 5

Plurality with Runoff

Answer 5

If someone receives the majority in the first round they win, if they don’t the top two candidates go to a second round (not Condorcet consistent but won’t choose CL)

Question 6

Borda Count

Answer 6

Each voter ranks and the alternative with the most points wins (not CW consistent, wont select CL)

Question 7

Condorcet Winner

Answer 7

an alternative that defeats all other alternatives in pair-wise majority comparisons

Question 8

Condorcet Loser

Answer 8

an alternative that is defeated by all other alternatives in pair-wise majority comparisons.

Question 9

Condorcet Consistency

Answer 9

A voting rule if it always selects the CW whenever it exists

Question 10

Majority Rule: Weakness/ Strengths

Answer 10

Agenday setter may have too much power when there is no CW, if there is a CW it will be selected, CL will never be chosen