Two candidates are running against each other for political office, an incumbent and a challenger. Each candidate faces the decision of whether to locate their campaign headquarters in the eastern or the western part of the district.

Their potential increases in electoral votes from this decision are illustrated in the payoff matrix. Assume each candidate wants to maximize potential votes and that they each know the complete payoff structure.

Incumbent Locate East Locate West I: Gain 6,000 votes I: Gain 6,000 votes Locate East Challenger C: Gain 5,000 votes C: Gain 1,000 votes I: Gain 4,000 votes I: Gain 7,000 votes Locate West C: Gain 2,000 votes C: Gain 4,000 votes