Question
Consider the checks and balances system between an executive and a court, where the court and executive have symmetric, single-peaked preferences. The court's ideal policy
Consider the checks and balances system between an executive and a court, where the court and executive have symmetric, single-peaked preferences. The court's ideal policy is 10 and the executive's ideal policy is 20, and the ideal policies are common knowledge (each player knows the other player's ideal policy). The executive moves first and proposes a policy, and then the court chooses whether to veto or not. If the proposal is not vetoed it becomes the policy outcome, if it is vetoed then the status quo policy remains in place. Denote the status quo by x 0 . For all possible values of x 0 (it can be any number from minus infinity to infinity), write the equilibrium policy outcome as a function of x 0 .
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