Number of television broadcasts

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Let G be the number of television broadcasts each day. Consider 3 individuals with preferences UA =G/4 UB =2–G^(3/4) UC =G–(G^2)/2 a) Show that the 3 consumers have single-peaked preferences (Hint: take the 1st derivative of the U- functions) b) If the government is choosing G from the range 0 ≤ G ≤ 2, what is the majority voting outcome? (Hint: Find the median voter) c) Does the outcome in part (b) maximize the sum of utilities W = UA + UB + UC?

Reference no: EM13896595

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