4 Voting in committees You are a member of a 9-person committee (so it\'s you an

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4 Voting in committees You are a member of a 9-person committee (so it's you and another 8 people in this committee) The committee must decide next year's policy, which can be to either keep this year's policy (status quo, or SQ) or choose a new policy, N. Each member casts a secret vote, and then the outcome that is chosen by a maority of the people is chosen as the policy for next year (either SQ or N) Everyone knows that SQ would result in a certain payoff of S5 millon. The payoff to N, however is uncertain. But each member of the committee has a team of advisors that wrote a report with a final recommendation, yes or fno), where (yes means that the advisors to that committe person believe N to be better than SQ, while {no) suggests otherwise For a diverse set of reasons, members of this committee cannot make these reports available to the other members. That is, you can only see your own report. But you do know that the more {yes]) in the reports, the higher the expected value of N. In fact, your experience suggests the following relationship between the number of reports with a fyes and the expected payoff from choosing the new alternative N: # t{ves) signals 6 expected value of N (millions of S)15 10523 678 9 10 Your past experience in these committees also suggests that other people always vote what their report tells them. So if the report of another member indicates fyes) then that member votes for N; and if the report indicates no, then that member votes for SQ Your advisors come back to you with a report that recommends yes. Should you vote for N or for SQ?

Explanation / Answer

I would Vote for N as the value of N will definitely be higher and based on my past experiences with the other members, they always prefer high values.

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