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A valuable resource in which we typically forbid voluntary exchange is votes. This may be inefficient in that, as we have seen, given any initial endowment of resources, voluntary exchange always makes both parties better off (absent any clear sources of market failure). Show that it would be a Pareto improvement (i.e., that at least some people would be better off and no one would be worse off) if we were to allow a legal market for votes. Are there any clear sources of market failure in the market for votes? If so, can you think of any policy options which might correct this market failure? Is it bothersome that there is a wide variance in income and wealth among the participants in this market, and if so, why is that variance more troubling in this market than in others and what would you do about it in the market for votes?
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