1 Political Theory and Political Institutions How Rules Produce Outcomes, Given Tastes and Preferences

2 Public Interest What is the Public Interest? What is the Public Interest? –The Sum of Private Interests –Where interests cannot be summed, there can be no public interest –Summation requires a common metric, $ are the easiest to use, WTP/WTS –Compensation principle

3 VotingVoting Majority Rule has a distinctive equilibrium Majority Rule has a distinctive equilibrium MEDIAN VOTER Preferences must be “single peaked” Preferences must be “single peaked” –single dimension –coherent preferences

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6 Agenda Control Reversion point (Status Quo?) Reversion point (Status Quo?) Voting rule Voting rule –Pairwise comparison, plurality, or unanimity? –Order in which alternatives are considered –Sidepayments? –Single site or multiple sites?

7 How a Bill Becomes a Law A bill is introduced in Congress--in either the House of Representatives or the Senate. A bill is introduced in Congress--in either the House of Representatives or the Senate. The bill is sent to committeefor study. It may be pigeonholed (put aside). It may go to subcommittee. It may--or may not--be changed. The bill is sent to committeefor study. It may be pigeonholed (put aside). It may go to subcommittee. It may--or may not--be changed. The bill is sent to the floor for debate. It may--or may not--be amended. The house where the bill began votes on it. The bill is sent to the floor for debate. It may--or may not--be amended. The house where the bill began votes on it.

8 If passed, the bill is sent to the other house. If passed, the bill is sent to the other house. It goes to the new congressional committee for study and may--or may not--be changed. It goes to the new congressional committee for study and may--or may not--be changed. The bill is debated and put to a floor vote. The bill is debated and put to a floor vote. The bill goes to conference, a conference of members of both the House and the Senate. The bill goes to conference, a conference of members of both the House and the Senate. The bill returns to the floor for final approval. The bill returns to the floor for final approval. The bill is put before the president to be signed into law or vetoed. The bill is put before the president to be signed into law or vetoed. If vetoed, the bill returns to Congress, which can override the veto with a two-thirds vote in each chamber. The bill dies if Congress fails to override. If vetoed, the bill returns to Congress, which can override the veto with a two-thirds vote in each chamber. The bill dies if Congress fails to override.

9 Committee and Individual Power Committee Power Committee Power –Policy Jurisdiction –Expertise –Agenda Control –Bargaining, Vote Trading, Coalition Building Individual Individual