Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1,000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $500 for Matt, $280 for Joe, and $260 for Teresa. In a majority vote, this proposal will most likely be

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The cost for each citizen is $333.33 ($1,000 total cost divided by 3). Matt benefits by $500, which is more than his cost, so he would vote in favor. However, Joe and Teresa both receive benefits less than their costs ($280 and $260, respectively, versus a $333.33 cost each), so they would likely vote against the proposal. Therefore, the proposal would be defeated, two against and one in favor.

Assume That Matt, Joe, and Teresa Are the Only Citizens