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Question 2. (15 marks) There are two political parties competing in an election. Before the election the parties can position themselves at 0, 1/4 ,

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Question 2. (15 marks) There are two political parties competing in an election. Before the election the parties can position themselves at 0, 1/4 , 1/2 , 3/4 , 1, where 0 is the most left political view and 1 is the most right. The party that is closest to the political center, ie. 1/2, wins and gets a payoff of 1, the losing party gets -1. If both parties have the same distance to the center, there is no clear winner, the parties have to form a grand coalition, and both have payoff 0. 2.1 Write down the normal form payoff matrix of the game. (5 marks) 2.2 Use the iterative elimination of strictly dominated strategies. Which strategy profiles survive? (5 marks) 2.3 What is the pure-strategy Nash equilibrium of the game

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