Sin título 1

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A democratic society cannot be expected to make consistent decisions.

Unrestricted domain, completeness, monotonicity, Consistency, Independence of Irrelevant alternatives and non-dictatorship.

unrestricted domain: it can produce a decision whatever the configuration of voter's preferences, it should allow multi-peaked preferences.

Rent seeking: The monopoly firms lobby the government to obtain higher than normal returns (rents) The deadweight loss of rent seeking is larger than the ordinary monopoly because the lobbyist who are hired by the monopoly firms can devote to other industry to create more output for the economy. The output could be as large as the rents, but it still depends on how the rents are dissipated.

Niskanen suggested that power, public reputation, status and so on are positively correlated with the size of bureaucrats budget and concluded that bureaucrats goal is to maximize its budget. TC=TB

The outcome of unanimity voting of public good would be Pareto efficient, The unanimity rule allows only pareto-efficient changes to be approved. Since everyone who agree the provision of the public good, there is no room to make any improvement.

The outcome of a majority voting of public good would not be pareto efficient. Because the outcome of the majority may not be the same as Samuelson Condition.

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