During the city's mayoral race one of the candidates hires G&B Consulting. This candidate is a challenger from the same party as the incumbent mayor and is vying to be put on the ticket in the general election. She believes that the nomination will likely come down to what stance she takes on a proposed tax bill. The bill is for a tax increase that would subsidize education grants. Staying within traditional party lines would be advantageous to gaining support from the core constituency, but going against party lines on the issue would help sway swing voters and independents. The issue is bound to come up at an upcoming debate and she wants the help of G&B Consulting to determine an optimum strategy.
Deliverable 05 – Worksheet
Incumbent
Challenger
Stay
Break
Stay
(0, 4)
(3, 0)
Break
(1, 2)
(2, 3)
Use this payoff matrix to determine if there are dominant strategies for either player. Find any Nash equilibrium points. Show all of your work.
Enter your step-by-step answer and explanations here.
Enter your step-by-step answer and explanations here.
Enter your step-by-step answer and explanations here.
Enter your step-by-step answer and explanations here.
Enter your step-by-step answer and explanations here.