Suppose. that lOO people live in a village where an election is being held. 51 villagers . support the conservative
candidate
- (A) and 49 support the liberal candidate {B} The- candidate getting the most votes wins. In case of a tie the winner is decided by the toss
Of a fair coin; A villager gets a payoff of +10 units of utility if his
favourite candidate
gets
elected and a payoff of -10 units of utility if the
opposition candidate gets
elected, But
voting is a nuisance as it costs voters one unit of utility. Those who stay at home and do
not vote evade this cost, but are rewarded or punished just the same as those who
shoulder the cost of voting,
. Which of the following statements is correct for this particular game?
a)In the above game nobody
choosing to
vote
is a Nash equilibrium outcome
b) In the above game there is no Nash equilibrium outcome in which everybody
chooses to
vote
c} One pure strategy Nash equilibrium outcome is
as follows :
All the supporters of the conservative
candidate
vote for
A and all the
supporters of the liberal candidate
vote for
B
(d) None of the above
Locked
