ECON 102 Lecture Notes - Lecture 24: Gordon Tullock, Intransitivity

• School: University of Illinois
• Department: Economics
• Course: ECON 102
• Professor: Isaac Dilianni--- Universityof Illinois

Document Summary

Econ 102 - lecture 24 -income inequality and public choice. Huge inequality between income classes of the usa and the rest of the world. Public choice: economic analysis of the political process. According to james m. buchanan and gordon tullock, public choice is politics without romance. To understand the concept of transitivity, assume: You prefer a over b (a b) You prefer b over c (b c) If your preferences are transitive, then: 3. You prefer a over c (a c) Condorcet"s paradox (the voting paradox): the theory that even if all individual preferences are transitive, the social preference ordering may still be intransitive.