Jake, Latasha, and Tim are the only inhabitants of the small island of Brite. Unfortunately, the island lacks a lighthouse to guide visitors. However, the inhabitants can import a public lighthouse from a neighboring island at a cost of $21,000. Once purchased, nothing could prevent any of the island’s inhabitants from using the lighthouse when traveling to and from the island. The following table shows each individual's benefit from importing the lighthouse.
Individual Benefit from a Lighthouse
Jake $5,700
Latasha $9,700
Tim $6,000
The total benefit from the lighthouse to Brite is . Therefore, it efficient for Jake, Latasha, and Tim to purchase the lighthouse.
If the community (Jake, Latasha, and Tim, in this case) voted on whether to divide up the cost of the lighthouse into equal shares of $7,000 per person, of the community would vote for this option.
Jake tries unsuccessfully to persuade Latasha and Tim that the island needs a missile defense system. During their discussion, Jake and Latasha get together and introduce a new vote.
The new vote bundles two proposals: the missile defense system and the proposal to divide the cost of the lighthouse into equal shares. Tim still votes no, but Latasha and Jake vote yes due to the agreements they made during their earlier discussion to approve the missile and lighthouse proposals simultaneously. This is an example of .
I am having trouble with this task if someone can kindly help me out?!