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Explain Why All Voters Will Have Single-Peaked Preferences for a Pure

Question 38

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Explain why all voters will have single-peaked preferences for a pure public good if the marginal benefit they receive from that good declines as more is made available per year.Explain how each voter decides whether to vote in favor of or against a proposal for a certain quantity of the pure public good to be made available per year.Assuming that tax shares are given, what can you say about the political equilibrium under majority rule? Show how an increase in the average cost of producing the pure public good will affect the political equilibrium.

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All voters will have single-peaked prefe...

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