The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received.
In the Nash equilibrium of this game:
A)both candidates run positive campaigns.
B)one candidate runs a positive campaign, and the other runs a negative campaign.
C)as long as one party runs a positive campaign, the other does too.
D)both candidates run negative campaigns.

Question

The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received.  
 In the Nash equilibrium of this game:
A)both candidates run positive campaigns. 
B)one candidate runs a positive campaign, and the other runs a negative campaign. 
C)as long as one party runs a positive campaign, the other does too. 
D)both candidates run negative campaigns.

Quizplus · Accepted Answer

For both candidates, running a negative campaign is a dominant strategy.

The Table Below Shows How the Payoffs to Two Political