> Each voter writes down $5 million, the project is undertaken, and social > loss of $85 per voter follows. > Eric
If a voter writes down $5 million, he is declaring that the project is worth far more to him than the $100 cost he will have to pay. He is willing to pay the $100, so what basis is there in concluding that there is a loss per voter? The demand has been revealed by the voters' statements. If they just feel good about having stated that, then it was worth $100 to feel good about it. I don't see why this would be less efficient than simply taking a majority vote, and the majority voting "yes" because they feel good about it. Demand revelation is not perfect, but it is more efficient than simple majority voting. If there is any inefficiency, it is collective democracy itself that is at fault, not the method of social choice. Fred Foldvary ===== [EMAIL PROTECTED]
