Question

Geoffrey, Suzanne, Jay, and Emma are college roommates. They're trying to decide where the four of them should go for spring break: Las Vegas or Vail. If they order the tickets by 10:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200 per person.

The following table shows the benefit (in dollar terms) that each roommate would get from the two trips.
Roommate Benefit from Las Vegas Benefit from Vail
Geoffrey $600 $1,300
Suzanne $850 $850
Jay $900 $700
Emma $1,100 $650
The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for 9:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations.
The roommates will get the most total benefit if they choose to go to .
Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for? Fill in the table with each roommate's preferred location, assuming that a given roommate will abstain if he or she has no preference.
Roommate Vote
Emma
Jay
Suzanne
Geoffrey
Under majority rule, the roommates will vote to go to . Therefore, majority rule leads to an economically outcome.
Suppose Emma misses the vote, leaving Geoffrey, Suzanne, and Jay to figure out where they're going to go.
Geoffrey and Jay argue for their preferred destinations, but Suzanne offers to vote with Geoffrey if Geoffrey will vote on her side in an upcoming class election. This is an example of:________.

Answer 1

Answer: Please refer to explanation

Step-by-step explanation:

1. The roommates will get the most total benefit if they choose to go to ________.

To answer this, you add the total benefit they could all get from going to either Las Vegas or Vail.

Las Vegas

= 600 + 850+ 900 + 1,100

= $3,450

Vail

= 1,300 + 850+ 700 + 650

= $3,500

The room mates in total will get a higher benefit if they choose to go to Vail.

2. Which location will each pick based on their benefits.

Emma gets a higher benefit if they go to Las Vegas so they will pick that.

Jay gets a higher benefit if they go to Las Vegas as well so they will pick that.

Suzanne will abstain as both places give them the same benefit.

Geoffrey gets a higher benefit if they go to Vail so they will pick that.

3. Under majority rule, the roommates will vote to go to ________ .

They will vote to go to Las Vegas because Emma and Jay will vote for it, Suzanne will abstain and Geoffrey will vote for Vail meaning 2 votes out of 3 for Las Vegas.

4. Therefore, majority rule leads to an economically _______ outcome.

• Inefficient outcome because in total they will get a smaller benefit going to Las Vegas as opposed to Vail.

5. This is an example of:________.

Logrolling

Logrolling is a practice by which people promise to mutually support each other at different times. Simply speaking, one will support the other in exchange for the other supporting the one at some later period in time. This is the deal that Suzanne offer Geoffrey.