Question 4: Julia, Kevin, and the Federal Election In this question we study the

Question

Question 4: Julia, Kevin, and the Federal Election In this question we study the economics behind the Labor party's choice of Kevin Rudd over Julia Gillard to face off against Tony Abbott in this year's federal election. Consider a costly rent-seeking model where prior to the federal election ("period 1"), the Labor party chooses either Gillard or Rudd to be their leader. Given their choice, the Labor leader faces off against Abbott in the federal election ("period 2") Having run some opinion polls, Labor finds Gillard is becoming unpopular among the electorate and will have a tougher time winning the election over Abbott. In particular, assume that if Gillard faces Abbottin the election, that if Gillard spends rent-seeking effort g and Abbott spends rent-seeking effort rA, then the probabilities that Gillard and Abbott win the election are: 0.5T where Pa is the probability that Gillard wins and pa is the probability that Abbott wins. If instead Rudd faces Abbott in the election and spends rr rent seeking effort, then the probabilities that Rudd and Abbott win the election are given by: 0.75r rr +Ta Tr +Ta where pr is the probability that Rudd wins and pa is the probability that Abbott wins. If Gillard/Rudd/Abbo spend rent-seeking effort rg/Tr/ra, assume that it costs them rg/rr/Ta regardless of the outcome of the election.2 Also assume throughout that rent-secking effort levels must be non-negative Hint: You may find it helpful to use the quadratic formula in answering question 4.3. In particulair, for a quadratic equation arb (where a, b,e are constants) the roots can be found with the quadratic formula: z 4 4.1 Derive the first order condition that characterises Gillard's optimal rent seeking effort level rg as a function of Abbott's rent seeking level ra 4.2 Derive the first order condition that characterises Rudd's optimal rent seeking effort level r as a function of Abbott's rent seeking level ra 4.3 Suppose that Abbott does not have any economists on his political staff and that he simply shouts out before Labor makes their Gillard/Rudd choice that he does not care who Labor chooses to face him and that he will commit to choose ra - 0.25 regardless of Labor's choice. Find Gillard's and Rudd's optinal rent-seeking levels, T, and T, given Abbott's choice of r,-0.25 4.4 Using your results from 4.3, show that Labor should choose Rudd as their party's leader if they want to maximise the probability that they win the federal election

Explanation / Answer

We've obvious this film earlier than, the one the place the predominant gamers engage in ever-heightening levels of narkiness and personal treachery unless each and every is so consumed through anger, bitterness and selfishness that they forget anybody instead of themselves.

The rest of us, those who put them there, are thoroughly forgotten as personal power takes over and any experience of the customary good is thrown off the edge of the cliff.

Definite, we were gripped by means of the saga, placing out of the window of the rapid-touring vehicle that was once Australian democracy as it hurtled prior a sedan that had crashed into the facet of the street because neither Kevin Rudd nor Julia Gillard would let go of the guidance wheel.

However it doesn't mean we want to watch it again.

Coalition MPs like to refer to that exact interval because the Rudd-Gillard-Rudd years.

Some even use the phrase with somewhat condescension of their voices, as if it did not take precisely two years and eight days to win government after which decide a sequel was once a exceptional inspiration.

And yet here we're once more.

Let's hold a couple of things in mind.

The primary is that the vote for the foremost parties is collapsing.

One Nation's fundamental vote was 1.Three per cent on the July 2 federal election final year. Latest polling puts it at 10 per cent.

Opinion polls have put the mixed first social gathering selection votes for the greens and One Nation at 20 per cent (and that is now not counting humans who're undecided or say they'd vote for that mysterious political participant "different").

That's one in five voters.

Bear in mind that alongside the declining stage of faith Australians have of their political process.

The Australian countrywide school's ordinary post-election analysis determined Australians' satisfaction with democracy has collapsed to its lowest level due to the fact that the Whitlam dismissal and published a populace that is increasingly disdainful of government, believes politicians have no idea what usual persons care about and are best enthusiastic about governing for the gigantic end of city.

Tony Abbott is correct when he says Australians are in poor health of politicians and can vote out the Coalition if it does no longer get on and do some sensible governing in the country wide interest.

However he forgets Australians are great at recognizing a spoiler and be aware of exactly what he's up to when he makes such observations.

When he used to be top minister Mr Abbott was fond of claiming individuals did not like "Canberra insider games".

He was on the cash.

That sentiment continues to be there and growing more advantageous with the aid of the day.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.