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Political Economy and Social Welfare with Voting Procedure

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  • Islam, Jamal
  • Mohajan, Haradhan
  • Moolio, Pahlaj

Abstract

Mathematical Economics, Social Science and Political Science are inter-related. In this paper, an attempt has been made to describe aspects of these subjects by introducing examples, definitions, mathematical calculations and discussions. Game Theory is included in this paper to study mathematical models in economics and political science especially to study Nash equilibrium. Success and failure of democracy are interpreted as different equilibria of a dynamic political game with cost of changing leadership. Unitary democracy can be frustrated when voters do not replace corrupt leaders. Federal democracy cannot be consistently frustrated at both national and provincial levels. Arrow’s theorem indicates that the aggregate of individuals’ preferences will not satisfy transitivity, indifference to irrelevant alternatives and non-dictatorship, simultaneously to enable one of the individuals becomes a dictator. In this paper both social welfare functions and social choice correspondence are considered in economical environments.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50671.

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Date of creation: 10 Oct 2009
Date of revision: 25 Sep 2009
Publication status: Published in KASBIT Business Journal 2.2(2009): pp. 42-66
Handle: RePEc:pra:mprapa:50671

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Keywords: Preference Relation; Pure and Mixed Strategies; Nash Equilibrium; Social Choice; Unitary and Federal Democracy.;

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Cited by:
  1. Islam, Jamal & Mohajan, Haradhan & Moolio, Pahlaj, 2010. "Median voter model cannot solve all the problems of voting system," MPRA Paper 50696, University Library of Munich, Germany, revised 22 Feb 2011.
  2. Islam, Jamal & Mohajan, Haradhan & Moolio, Pahlaj, 2010. "Methods of voting system and manipulation of voting," MPRA Paper 50854, University Library of Munich, Germany, revised 06 May 2010.
  3. Islam, Jamal & Mohajan, Haradhan & Moolio, Pahlaj, 2011. "Borda voting is non-manipulable but cloning manipulation is possible," MPRA Paper 50848, University Library of Munich, Germany, revised 10 Jan 2012.
  4. Mohajan, Haradhan, 2011. "Majority judgment in an election with Borda majority count," MPRA Paper 50846, University Library of Munich, Germany, revised 15 Sep 2011.
  5. Mohajan, Haradhan, 2011. "Social welfare and social choice in different individuals’ preferences," MPRA Paper 50851, University Library of Munich, Germany, revised 19 Jun 2011.

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