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Application of Voting Paradox

SJNSOM Academic Fee

Name Roll No
Boopathi Raja P R 159278021
Yanamadala Rohith 159278110
Kumar
Sathish Kumar R 159278115

Game Theory 1
Voting Game

A game where the outcome of any vote depends on the


voting rules and the ballots submitted by voters.
Goal is to make the largest number of people happy while
allowing everyone to vote honestly.

Majority Rule with Two Candidates: Each voter indicates


a preference for one of the two candidates and the
candidate with the most votes wins.

What if there are three candidates?


Game Theory 2
Condorcet Paradox
Suppose we have three candidates, A, B, and C, and that
there are three voters with preferences as follows.
Voter 1st 2nd 3rd
Preferenc Preferenc Preferenc A B
e e e
Voter 1 A B C
Voter 2 B C A
C
Voter 3 C A B

Condorcet Paradox: It is a situation in which collective


preferences can be cyclic, even if the preferences of
individual voters are not cyclic (i.e., transitive).
Game Theory 3
Types of Voters

Nave Voter: He always casts his ballot honestly, even


when it is not in his best interest to do so.

Strategic Voter: This voter supports another candidate


more strongly than his or her sincere preference in order
to prevent an undesirable outcome.
Strategic Voting Behaviour: The game essentially
reduces to a static game in which the set of strategies
and the set of moves coincide and finally forms a Nash
Equilibrium.
Game Theory 4
Scenario

SJNSOM is one of the premier B schools in India which attracts


Crme De Crme of CAT aspirants. Its affordable fee along
with the better RoI among the colleges of its league is one of
the crucial factors for choosing SJNSOM over others. Now the
institute is planning to revise its academic fee to be at par
with its competing institutes (IIN A, B, C)
But there exists a contrasting opinions among the different
stakeholders,
Students : Doesnt want fee hike (Low)
Faculties : Average fee hike (Medium)
HoD : Higher than IINs (High)
Game Theory 5
Voter Preferences
Students Association : Low > Medium > High
Faculties Association : Medium > High > Low
HoD : High > Low > Medium

HoD is designated as a decision making head and he/she has the


power to cast the Tie-Breaking vote i.e. In case of difference of
opinion between Students Association& Faculties Association,
the choice of HoD will become the final one (High Fee).

Additional Info: SJNSOMs PMBA program charges more than ISP.


Grand success of that is also the reason for the preference of HoD.

Game Theory 6
The Nave Voting Model

If all three members of the committee vote naively, then


the outcome of vote is straightforward and intuitive:

Students L H is chosen by the


Faculties M committee and
HoD H academic fees is
revised at par with
its Competitors.

Game Theory 7
HoDs Play Strategy
Consider HoDs best response to every possible pair of votes by
Students and Faculties.

If Students and Faculties vote for the same candidate, then HoDs
vote is irrelevant and all three of HoDs strategies are equally good.

If Faculties and Students split their vote, then Ms. HoDs vote
determines the outcome. Hence HoD has a weakly dominant
strategy of voting for H. we would predict, and so presumably
would Faculty and Students, that he will vote for H.

Game Theory 8
Payoff Matrix assuming HoD votes for H

Studentss vote
H M L
(middle, worst, (Middle, worst (Middle,
Fac H
best) best,) worst, best)
ultie
s (middle, worst, (best, middle, (Middle,
M
vote best) worst) worst, best)
(middle, Worst, (Middle, Worst, (Middle, best,
L
best) best) worst)

Payoffs: Faculties, Students and


HoD Game Theory 9
Payoff Matrix assuming HoD votes for H and
Students does not vote for H

Students vote
M L
(Middle, worst,
H (Middle, worst, best)
best)
Faculties
vote (best, middle,
M (Middle, worst, best)
worst)
(Middle, Worst,
L (Middle, best, worst)
best)
Payoffs: Faculties, Students and
HoD
Game Theory 10
Final Outcome

Medium Fee hike


As Students of Gamezz Theory, strategically they have
to accept the Medium fee hike rather than applying the
Nave strategy and end paying High fee which ideally
they do not want

Verdict : Faculties win

Game Theory 11
Thank You All.

Game Theory 12