Find the median voter eqm, Business Economics

Assignment Help:

In the model with utilities

Wⁱ = cⁱ + α ln(xⁱ)

where individuals are endowed with ability levels w_p < w_m < w_R and form fractions π_p, π_m, π_r with π_m > π_p, π_r such that the median person is in group m.

Find the median voter eqm.
Now consider a situation where w_p falls. What changes at eqm?
What if wm rises?

Related Discussions:- Find the median voter eqm

Less developed countries economies grow by primary sector, Can less develop...

Can less developed countries economies grow by developing its primary sector as agriculture? Less developed countries economies can grow by developing its primary sector as ag

Define business environment, Problem: (a) Define ‘Business Environment'...

Problem: (a) Define ‘Business Environment'. (b) Briefly distinguish between internal and external environments of business. (c) Discuss on the key components of the gener

Analytical hierarchy process - supplier selection, Analytical Hierarchy Pro...

Analytical Hierarchy Process - Supplier Selection Supplier selection is a multi-criteria decision-making problem that the selection process mainly involves evaluating a number

Managerial economics, how does economic theory contribute to managerial dec...

how does economic theory contribute to managerial decisions?

What factors affect population change, What factors affect Population Chang...

What factors affect Population Change? Population growth is affected by given factors: • Births from the 1960s birth rates have declined quickly inmost LDCs except which in

Di, Disadvantages of globalisation

Disadvantages of globalisation

Calculate average total cost, Calculate Average Total Cost A perfectly ...

Calculate Average Total Cost A perfectly Competitive firm is operating at a profit-maximizing level of output, q*. This output level is 500 units. At this output level, the

Surplus procedures, Consider a market for a good where there is a per unit ...

Consider a market for a good where there is a per unit tax set at t cents per unit sold, where the demand curve slopes downward and where supply is perfectly inelastic. Suppose the

How can be comparative advantage improved, How can be comparative advantage...

How can be comparative advantage improved? Comparative advantage can be gained or improved through: • Investment during the education and also in training • Investment wi

Cost of production of a firm in the long run, Question 1: (a) Explain,...

Question 1: (a) Explain, giving examples, the law of diminishing returns, clearly bringing out the relationship between cost curves and product curves in the short run. (

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages