Question
onsider the policy determination game as described in Lecture 1-10. In the lecture, we assumed that each partys objective is to maximize the number of
onsider the policy determination game as described in Lecture 1-10. In the lecture, we assumed that each partys objective is to maximize the number of votes. Instead, we consider the following setting:
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Each party has its own ideal policy. The Democrats ideal policy is \frac{2}{5} 52, while the Republicans ideal policy is \frac{4}{5} 54.
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The party that obtains the highest number of votes wins the election. If the number of votes obtained by each party is the same, each party wins the election with a probability of \frac{1}{2} 21.
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The party that wins the election implements the promised policy.
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Each party's objective is to minimize the distance between the party's ideal policy and the policy implemented by the winner.
Note that voters ideal policies are uniformly distributed over \left[ 0, 1 ight] [0,1] and that the policy is chosen between \left[ 0, 1 ight] [0,1].
Under this condition, select all the correct sentences from the options below. The set \left[ \mathbf{a}, \mathbf{b} ight] [a,b] represents the position of promised policies: the position of the Democrats promised policy is \mathbf{a} a, and that of the Republicans is \mathbf{b} b.
e.g., \left[ \frac{2}{5}, \frac{4}{5} ight] [52,54] indicates that the location of the Democrats promised policy is \frac{2}{5} 52, and that of the Republicans is \frac{4}{5} 54.
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