Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following two questions are variations of the Hoteling political competition model. There is an election with 2 political parties: A and B. Each party
The following two questions are variations of the Hoteling political competition model.
There is an election with 2 political parties: A and B. Each party simultaneously announces which tax rate it will enact if elected. A tax rate is a number between 0 and 1.
Voters are uniformly distributed along a linear spectrum starting from 0 and ending at 1. Each voter's position on this spectrum represents her preferred tax rate.