Third-party candidate Politician A has decided to run for political office on a platform promising lower taxes
Question:
Third-party candidate Politician A has decided to run for political office on a platform promising lower taxes and cuts in public services. His opponent B promises higher taxes and more funding for public services. All things equal, the voters prefer low taxes and generous public services. Now, Politician B is in the lead. Politician A decides to channel some of his campaign funds to a third-party candidate, C, who will act as a decoy. What sort of platform must the third-party politician endorse to act as a decoy for A? The following example is designed to show just how useful the study of behavioral economics can be. Remember that with great power comes great responsibility.
Step by Step Answer:
A Course In Behavioral Economics
ISBN: 9781352010800,9781352010817
3rd Edition
Authors: Erik Angner