In: Economics
Discuss the relationship of Public Choice and Voting and explain the Voting Paradox problem that can arise.
Answer : Voting is totally dependent on public choice. Public decide to which party should be winner depending on public demands and give vote to decided party. Let there are 3 parties who assures to fulfil the different demands of publics . Again let there are 3 groups of publics and each group has different demand. Let parties are : I , II , III ; and groups are : A, B and C. Now, if party II gives assurance to fulfil the demand of group C after winning the election then group C prefers party II and give vote for win. Similarly, let group B prefers party I and give vote. Again let group A prefers party III and give vote. This is the relationship between public choice and voting.
The problem of voting paradox is that majority of voting is not stable for all time. Let above 3 parties and groups are with following preferences :
I : A > B > C :: Here first preference occurs by group A, second preference by group B , third preference by group C.
II : B > C > A :: Here first preference occurs by B then by group C and then by group A.
III : C > B > A :: Here first preference occurs by group C then by group B and then by group A.
Here it is clear that majority preferences are not stable for any particular party.