Question

In: Economics

In some states, hunting licenses are allocated by lottery; if you want a license, you send...

In some states, hunting licenses are allocated by lottery; if you want a license, you send in your name to enter the lottery. If the purpose of the system is to ensure that those who want to hunt the most get a chance to do so, what are the flaws of this system? How would the situation improve if people who won licenses were allowed to sell them to others?

Solutions

Expert Solution

In case of the lottery, the outcome is not controlled and it totally depends on the randomness and the population mix. For example, if in the lottery pool, then there is a greater probability that the number of individuals who are actually interested in hunting is more than the licenses will be provided in greater number to those who are serious hunters than the number of non-serious hunters and vice versa.

The main drawback of this system is its randomness and the dependency of the population mix. There can be chances that majority of licenses are given to those who are not so much keen on hunting and majority of people who are really looking to hunt remains unallocated of licenses due to this randomness.

This situation can be improved if the non-serious hunters are allowed to sell their licenses to the serious hunters as those individuals who are not inclined towards hunting can sell their license and the persons having interest in hunting can hunt by buying these licenses. However, this situation can even worsen the entire case as when the option is provided o sell out the license there can be a chance that more non-serious hunter applies for the lottery for earning the profit by selling the licenses.


Related Solutions

You want to send pumpkins to some of your friends for Halloween! You look up shipping...
You want to send pumpkins to some of your friends for Halloween! You look up shipping policies and find out that there are certain constraints involved when shipping packages. A pumpkin needs to weigh at least a certain amount in order to be eligible for shipping. At the same time, no pumpkin can weigh more than a certain amount due to packing restrictions. However, you have already purchased a whole lot of pumpkins in varying sizes. You now want to...
A typical "Pick Six" lottery run by some states and countries works as follows: Six numbered...
A typical "Pick Six" lottery run by some states and countries works as follows: Six numbered balls are selected (unordered, without replacement) from 49. A player selects at random six balls. Calculate the following probabilities: a. The player matches exactly three of the six selected balls. b. The player matches exactly four of the six selected balls. c. The player matches exactly five of the six selected balls. d. The player matches exactly six of the six selected balls.
On a recent trip to the united States, you purchased a ticket in a state lottery....
On a recent trip to the united States, you purchased a ticket in a state lottery. Now you discover that you are the lucky winner of the $30 million prize. You can take your prize money either as (a) 30 payments of $1 million per year (starting today), or (b) $15 million paid today. If the interest rate is 8%, which option should you take. Show calculations 2. James has just turned 35 years old, and he has decided it...
You want to have $45000 to send a child to college in 10 years. Your bank...
You want to have $45000 to send a child to college in 10 years. Your bank offers a college savings account that pays an APR of 4.2% compounded monthly. a. How much would you need to deposit monthly to reach your goal? b. Write the first four lines of the amortization table for this investment.
Suppose you analyzed the ages listed on marriage licenses in Cumberland County, Pennsylvania for some period....
Suppose you analyzed the ages listed on marriage licenses in Cumberland County, Pennsylvania for some period. You examine 100 licenses for your study. You find that the bride was younger than the groom for 67 couples, and the groom was younger than the bride for 27 couples. Both people listed the same age on the marriage license for the remaining 6 couples, so disregard them and consider 94 as the sample size. Activity 6 Answers: a) Determine a 99% confidence...
For this assignment I want you to assume you are the President of the United States,...
For this assignment I want you to assume you are the President of the United States, and China (one of our largest export customers) decides to ban all imports from the U.S. What effect would that have on the U.S. economy? Consider AD, unemployment, inflation, and recession as you contemplate your answer. Once you have determined a potential danger to our economy, what fiscal policy tool would you use to mitigate the damage of China’s decision?
You and a friend are using the C(7,4) Hamming code to send some 4-bit messages to...
You and a friend are using the C(7,4) Hamming code to send some 4-bit messages to each other. (a) You encode the message 1010 and send the encoded 7-bit sequence to your friend, who receives 1011011. How many errors were introduced during transmission? (b) You subsequently receive the encoded sequence 0111011 from your friend. Assuming at most one error, what is the 4-bit message that your friend sent?
Assume you are a manufacturer of small kitchen electrics, and you want to determine if some...
Assume you are a manufacturer of small kitchen electrics, and you want to determine if some innovative feature designs with unusual shapes and colors developed for town up –scale household dwellers could be successfully marketed even in the neighboring countries. What qualitative research would you recommend and why?                [10 Marks] Distinguish between structured, semi structured and unstructured interviews.                                                                                                                                                                                                               [10 Marks]
Consumers Energy states that the average electric bill across the state is $147.49. You want to...
Consumers Energy states that the average electric bill across the state is $147.49. You want to test the claim that the average bill amount is actually less than $147.49. The hypotheses for this situation are as follows: Null Hypothesis: μ ≥ 147.49, Alternative Hypothesis: μ < 147.49. You complete a randomized survey throughout the state and perform a one-sample hypothesis test for the mean, which results in a p-value of 0.0416. What is the appropriate conclusion? Conclude at the 5%...
Consumers Energy states that the average electric bill across the state is $48.287. You want to...
Consumers Energy states that the average electric bill across the state is $48.287. You want to test the claim that the average bill amount is actually less than $48.287. The hypotheses for this situation are as follows: Null Hypothesis: μ ≥ 48.287, Alternative Hypothesis: μ < 48.287. A random sample of 35 customer's bills shows an average cost of $51.651 with a standard deviation of $8.3447. What is the test statistic and p-value for this test?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT