 ## Microeconomics

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Asymmetric Information, Voting, and Public Choice

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Alright, now let's discuss another issue related to voting. The Condorcet voting paradox. Alright, Condorcet voting paradox. This is that the majority voting can result in inconsistent results. Okay. We might get inconsistent results when we do a majority vote, right? The majority vote is the majority wins whenever whoever is in the majority wins the vote. So let's think of this situation where we've got three groups faced with three choices. So the first group has these preferences, right? First choice, second choice, third choice. They pick A over B. Over C. Right? Second group B. C. A. Third group C. A. B. So let's see what happens if we send these things to a vote and they have to go up against each other. Right? The first one would be if we sent A versus B to a vote. Right? So let's go here and see who would vote for what? In A. Versus B. So the first group, would they pick A. Or B. If that was the vote? Well, their first choice is A right. The first groups, first choice is A. So they would pick A. What about the second group? The second group's first choice is B. So they would pick B. And how about the third group? The third group's first choices C. But that's not available, right? This is a. Vote between A. And B. So they're gonna vote for A. And A. Is gonna win this vote A wins the vote between A and B. Now, what happens if we put the vote between B and C. Between B&C. Well, what is group one gonna vote for? They can't get their first choice of a. So they'll take their second choice of B. What about group to? Well they get their first choice right? They're gonna vote for B. And group three. Their first choices C. Which is uh it is it is in the vote. So that is what they're gonna vote for. Group three votes for C. In this case be wins right? B. Comes out oversee. And guess what's gonna happen in this third scenario? If you can't guess, let's go ahead and pull it out. So we've got C. Versus A. In this case, what is? Group one gonna pick? Group one is gonna pick their first choice of A. And they'll vote for a group to, well their first choice of B is not available. So they're gonna vote for C. And three is gonna vote for their first choice of C. Up here. Right? So group three is gonna vote for C. And we're gonna see that C. Wins. Right? So C. Wins. And what we see is that when there are more than two options, what's gonna happen is that the order of the voting agenda influences the outcomes? Okay, so this condorcet voting paradox showed us that depending on the pairing A one B one C. One but if a BB and B beats C. But then see beat A right this transitive property, right? Remember we studied algebra and we had something like if A equals B and B equals C. Well then A must equal C. Right? That's something that we learned in algebra. Well, that's totally falling apart right here, right? Because A was able to beat B and B was able to beat C. So we would imagine that they could beat C. But then see beat A. Right. Crazy. So this is the paradox here. Alright, So I guess let's pause here and then in the next video, let's see how we can use this knowledge of the agenda and the order of the vote to force certain policies to win. Okay, let's let's pause here and then we'll continue with that example.
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## Order of the Vote 2m
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