ECON3029 Direct Democracy
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1
What is Direct Democracy in terms of electoral systems?
System where citizens vote directly over final outcomes
2
What is political economy?
Study of how politics affects the economy and vice versa
3
What is direct democracy?
Citizens vote directly over final outcomes
4
What is representative democracy?
Citizens elect politicians who then make policy decisions
5
What is an example of direct democracy mentioned?
The Assembly of the Canton Glarus in Switzerland
6
What does pure majority rule entail?
Citizens voting directly over final alternatives, sincere voting, and open agenda
7
What are the two usual forms of rationality mentioned?
Instrumental rationality and expressive rationality
8
What makes a person's behavior rational according to the lecture?
Having complete and transitive preferences over possible actions
9
What are the two conditions that a preference relation must satisfy?
Complete (a ⪰ b or b ⪰ a) and Transitive (if a ⪰ b and b ⪰ c, then a ⪰ c)
10
What does the Representation Theorem state about utility function u(.)?
u(a) ≥ u(b) if, and only if, a ⪰ b
11
What type of preferences are single-peaked?
Preferences with a most preferred alternative, whether that be one extreme or an intermediate position on a uni-dimensional spectrum
12
What characterizes single-peaked preferences?
Utility decreases as we move away from the peak and never increases again ie one local maximum
13
How can rational preferences be represented?
Using a utility function (Representation Theorem)
14
Draw multi-peaked preferences
Blue line
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