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
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.
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