How each candidate should choose position

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Reference no: EM132197859

Question: How each candidate should choose her/his position?

Game table below:

Two candidates; choose positions on political spectrum

1 2 3 4 5

20% votes at each position

Voters vote for closest candidate; if tie, split ½ and ½

Payoffs: share of vote

For each candidate, 2 strictly dominates 1, and 4 strictly dominates 5; eliminate them

Then, for each candidate, 3 strictly dominates 2 and 4; eliminate them and we are left with (3,3)!

1. Consider Hotellingâ€^TM location game (the median voter theorem) discussed in class. Suppose now that there are three candidates (instead of two).

a) Is the outcome in which the three candidates choose their positions around the center, i.e., the outcome (3,3,3), an equilibrium outcome? Explain.

b) Explain if there is any Nash equilibrium and find out if there is any.

Reference no: EM132197859

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