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
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