PLEASE HOW TO THINK ABOUT IT AND SOLVE Suppose that two candidates competing for political office must each choose a position fromthe set Sį = {1,2,..., 10}. Voters are equally distributed across these ten positions, andvote for the candidate whose position is closest to their own. If the two candidates areequidistant from a given position, the voters at that position split their votes equally. Eachcandidate wants to maximize their share of the total vote. Thus, for example, u₁(8,8) = 50and u₁(7,9) = 75. Note that you do not need to write out the payoff matrix to answer eitherof the following questions.(a) What strategies are strictly dominated for each candidate? Give a full explanation foryour answer; in particular, for each dominated strategy, be sure to explicitly identify atleast one other strategy that dominates it.Solution: Strategy 1 is strictly dominated by strategy 2 for each candidate. To seethis, note first that if the other candidate chooses position 1, then 2 gives a payoff of 90whereas 1 gives a payoff of 50. If the other candidate chooses position 2, then 2 gives apayoff of 50 whereas 1 gives a payoff of 10. If the other candidate chooses a position 3or higher, then position 2 always gives a payoff greater by 5 than that from position 1.Since position 2 gives a strictly higher payoff than position 1 against every strategy forthe opponent, position 1 is strictly dominated. Similarly, strategy 10 is strictly dominatedby strategy 9. No other strategies are strictly dominated since each is a best response tothe opponent choosing a position one spot farther from the median.(b) What strategies remain after iterated elimination of strictly dominated strategies?Solution: Once positions 1 and 10 have been eliminated for both players, position 2 isstrictly dominated by position 3 and position 9 is strictly dominated by position 8 (theargument is similar to the one given in part (i)). Once positions 2 and 9 have beeneliminated, position 3 is strictly dominated by position 4, and 8 by 7. Once 3 and 8 havebeen eliminated, 4 is strictly dominated by 5, and 7 by 6. We are left with strategies5 and 6 for each player, neither of which strictly dominates the other in the remaininggame.

In game theory, a dominant strategy is one in which a player's optimum course of action is one…

Suppose that two candidates competing for political office must each choose a position from the set S; {1,2,..., 10}. Voters are equally distributed across these ten positions, and vote for the candidate whose position is closest to their own. If the two candidates are equidistant from a given position, the voters at that position split their votes equally. Each candidate wants to maximize their share of the total vote. Thus, for example, u₁(8,8) = 50 and u₁(7,9) 75. Note that you do not need to write out the payoff matrix to answer either of the following questions.

Suppose that two candidates competing for political office must each choose a position from the set S; {1,2,..., 10}. Voters are equally distributed across these ten positions, and vote for the candidate whose position is closest to their own. If the two candidates are equidistant from a given position, the voters at that position split their votes equally. Each candidate wants to maximize their share of the total vote. Thus, for example, u₁(8,8) = 50 and u₁(7,9) 75. Note that you do not need to write out the payoff matrix to answer either of the following questions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

what are the things that your group things that could be better in your school or community
Give an example for how How an AIS can add value to an organization?
can you please explain step 4 again, I can't see whats written there.
You and your family was going to a vacation. Explain how you arrive with your decision and explain where and when. Discuss the roles of family members in terms of: •end-users •customer •Influencer
Why is
economic factors thst affect healthy eating
What is Art Appreciation?
Why underground economy is bad?
What the answer