Creating Confusion · All figures

Figure 5. Citizens’ utility u^*(\alpha,c) as a function of \alpha.

Citizens’ utility \(u^*\) as a function of \(\alpha\) for \(c>1\) and \(c<1\). For \(c>1\) the citizens’ utility is strictly increasing in \(\alpha\). For \(c<1\) the citizens’ utility reaches an interior maximum at \(\alpha=\alpha^*\) and then decreases \(u^*\rightarrow 0\) as \(\alpha\rightarrow\infty\). As a function of \(c\), the citizens’ utility inherits the jump discontinuity in \(\delta^*\) at \(c=1\).

Figure 5. Citizens’ utility \(u^*(\alpha,c)\) as a function of \(\alpha\).