(a) Consider the action profile where all three parties choose xm 1. Is (1) a Nash equilibrium? Explain. (b) Now consider the action profile (A, B, Xc) = (1, ², 3). Is it a Nash equilibrium? Explain.
(a) Consider the action profile where all three parties choose xm 1. Is (1) a Nash equilibrium? Explain. (b) Now consider the action profile (A, B, Xc) = (1, ², 3). Is it a Nash equilibrium? Explain.
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.12P
Related questions
Question
![(1) Multi-Party Electoral Competition - In class, we assumed that there are two
parties competing in the election. Let us consider the alternative case with three
contending parties, A, B and C. Other parts of the game remains the same. In
particular, the election is decided by plurality rule, so the party with the largest vote
count (share) wins. Moreover, when there is a tie, the tying parties each win with
equal probabilities.
1
(a) Consider the action profile where all three parties choose xm = 1/2. Is (1⁄2, ½, ½) a
Nash equilibrium? Explain.
2
(b) Now consider the action profile (A, B, C) = (1, 3, 3). Is it a Nash equilibrium?
3'
Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42f9d7c6-4c7a-44ab-8c36-1d379ff2d1eb%2F791fc1e6-e4d0-4ee7-81cc-ad802cc91566%2Fqdignq_processed.png&w=3840&q=75)
Transcribed Image Text:(1) Multi-Party Electoral Competition - In class, we assumed that there are two
parties competing in the election. Let us consider the alternative case with three
contending parties, A, B and C. Other parts of the game remains the same. In
particular, the election is decided by plurality rule, so the party with the largest vote
count (share) wins. Moreover, when there is a tie, the tying parties each win with
equal probabilities.
1
(a) Consider the action profile where all three parties choose xm = 1/2. Is (1⁄2, ½, ½) a
Nash equilibrium? Explain.
2
(b) Now consider the action profile (A, B, C) = (1, 3, 3). Is it a Nash equilibrium?
3'
Explain.
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