The foundation of government
9 important questions on The foundation of government
Justifications for the existence of governments
•are solutions to situations of strategic interaction (games) •are providers of public goods •regulate activities that produce externalities
Prisoner’s Dilemma
Each would be better off in his/her own judgement, at least in the long run, if all would impose certain restrictions upon their behaviour.
and individual compliance with these restrictions results into a considerable disadvantage compared to non-compliers, whereas the negative overall effect of one or a few non-compliers is relatively small.
The concept of a solution to a (repeated) Prisoner’s Dilemma game
•Assumptions: •There is communication. •It is possible to make binding agreements.
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The state and the provision of public goods
In the absence of such coordination, too little of the public good is being produced
Externalities seen from the perspective of restricted liberty and reciprocity
Objection to Coase’s analysis
What is the role of the government according to allocative efficiency
What is the redistribution viewpoint?
Hypotheses as to why redistribution occur
3.2 Redistribution as a public good
3.3 Redistribution to satisfy fairness norms
3.4 Redistribution to improve allocative efficiency
3.5 Redistribution as taking
The hypotheses/motives described under 1-4 see redistribution as something that can occur with the consent of all.
•It may thus be argued that in that case we are dealing with examples of allocative efficiency rather than redistribution.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
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