We show that the set of competitive equilibrium points of a pure exchange economy are the equilibrium points of a broader class of better-response demands than the usual utility-maximizing demand functions. The better-response demands are derived from assigning weights to all commodity bundles...

Two groups of voters of known sizes disagree over a single binary decision to be taken by simple majority. Individuals have different, privately observed intensities of preferences and before voting can buy or sell votes among themselves for money. We study the implication of such trading for...