Determine the optimal strategy for the situation by representing it as a game and finding the saddle point. State your final answer in the terms of the original question. A Republican and a Democratic candidate are running for office in a heavily Republican county. A recent newspaper poll comparing

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter15: Imperfect Competition
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Determine the optimal strategy for the situation by representing it as a game and finding the saddle point. State your final answer in the terms of the original question.

A Republican and a Democratic candidate are running for office in a heavily Republican county. A recent newspaper poll comparing their views on taxes and welfare reform showed that when compared on taxes or on welfare reform, the Republican leads by 20%. When comparing the Democrat on welfare reform to the Republican on taxes, the Republican leads by 35%. But when comparing the Democrat on taxes to the Republican on welfare reform, the Republican leads by only 15%. Use this information to decide what each candidate should discuss at their next debate. (Let T represent taxes and W represent welfare reform.)

  Democrat
  T                W
Republican 
 
T
 
 
 
W
 
 %    %
 %    %
 
=

 

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