Judging Social Welfare Policy with the Solving of the Bargaining Problem
AbstractCurrent analysis addresses an apparently critical issue of wealth circulation in the society. In the form of three persons game, we put the welfare-related burden on taxpayers. The Negotiator No.1 stands up for citizens’ legal and moral right to social services. The Negotiator No.2 proceeds from the needs of citizens for the provision of public goods. Quite the opposite, the Player, called No.3, gives the private consumption a preference over social services and public goods, i.e., the citizens-taxpayers try to reduce their tax obligations being accumulated into the general account of negotiators No.1 and No.2. In fact, the voters-citizens fulfil their expectations about taxes by a threat to acknowledge or to reject the bargaining agreement, e.g. a welfare committee must approve a motion against big taxes by unanimous vote. The government assesses and controls the wealth circulation by poverty line parameter. We provide an evidence for claim that 50% median income is an ideal solution.
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Bibliographic InfoPaper provided by EconWPA in its series Game Theory and Information with number 0304004.
Date of creation: 25 Apr 2003
Date of revision: 26 Apr 2003
Note: Type of Document - Acrobat PDF; prepared on Adobe ver. 4.0; to print on transparent/device-independent; pages-30; tables-1, figures-3. Earlier version of this paper was presented at the Third International Conference on Public Economics, PET02, Paris, July 4th – 6th 2002, http://www.datalaundering.com/download/program.pdf, http://www.datalaundering.com/download/paris.pdf, Research Announcements, Economics Bulletin,Vol. 28 no. 22, 2001, current version has been presented at the Conference of Economic Design, SED04, Mallorca, June 29th – July 2nd 2004, http://www.iae.csic.es/sed2004/doc/Program2306.pdf
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: bargaining; decision; public goods; taxation; voting;
Other versions of this item:
- Joseph E. Mullat, 2001. "Judging Social Welfare Policy with the Solving of the Bargaining Problem," Public Economics 0112007, EconWPA, revised 13 Jan 2004.
- Joseph E. Mullat, 2002. "Judging Social Welfare Policy with the Solving of the Bargaining Problem," Game Theory and Information 0203007, EconWPA, revised 07 Aug 2002.
- Joseph E. Mullat, 2002. "Judging Social Welfare Policy with the Solving of the Bargaining Problem," Game Theory and Information 0207003, EconWPA, revised 07 Aug 2002.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-27 (All new papers)
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