Question
Consider a Hotelling's model of electoral competition in which the players are two candidate and a policy is a number, referred to a position (denoted
Consider a Hotelling's model of electoral competition in which the players are two candidate and a policy is a number, referred to a "position" (denoted by x, and 0<=x<=1).
After the candidates have chosen positions, each of a set of citizens votes for the candidate whose position she likes best. Each candidate prefers to win than to tie for first place, and prefers to tie for first place than to lose. There is a continuum of voters, each with a favorite position. The distribution of these favorite positions over the set of all possible positions is uniform. Find the 2nd candidate's best response function and draw this diagram.
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