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The Table Below Shows the Payoffs to the Running of Negative

Question 58

Multiple Choice

The table below shows the payoffs to the running of negative and positive political ads by two candidates.The payoffs are the percentage increase or decrease in the number of voters willing to vote for the candidate as a result of the campaign styles.  Republican Candidate Democratic Candidate  Positive Campaign  Negative Campaign  Positive Campaign  Democrat 0% Republican 0% Democrat 3% Republican: +3% Negative Campaign  Democrat +5% Republican: 5% Democrat 2% Republican: 2%\begin{array}{c}\quad \quad \quad \quad \quad \quad\quad\quad\quad\quad\quad \quad \text { Republican Candidate } \\\text {Democratic Candidate } \begin{array}{|l|l|l|}\hline & \text { Positive Campaign } & \text { Negative Campaign } \\\hline \text { Positive Campaign } & \begin{array}{l}\text { Democrat } 0 \% \\\text { Republican } 0 \%\end{array} & \begin{array}{l}\text { Democrat }-3 \% \\\text { Republican: }+3 \%\end{array} \\\hline {\text { Negative Campaign }} & \begin{array}{l}\text { Democrat }+5 \% \\\text { Republican: }-5 \%\end{array} & \begin{array}{l}\text { Democrat }-2 \% \\\text { Republican: }-2 \%\end{array} \\\hline\end{array}\end{array}
Refer to the figure above.Given the payoff matrix,the Nash equilibrium will be that:


A) both political parties will run positive campaigns.
B) the Republicans will run a positive campaign and the Democrats a negative campaign.
C) as long as one party runs a positive campaign,the other will,too.But as soon as one party starts running a negative campaign the other will follow.
D) both political parties will run negative campaigns.

Correct Answer:

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