Answer to Question #299727 in Microeconomics for Binu

Question

In the United States, 2020 is an election year. The current President, Donald Trump, has stated that he cannot say whether he will accept the results from the upcoming election, in which he is a candidate.

a) From a game theory perspective, why is it to his advantage to state this, assuming that the other candidates will follow the regular ethics of the elections? (15 points)

b) What if you do not assume that the other candidates will follow the regular election ethics? How would this affect US democracy? (15 points)

Answer 1

a)because from the point of view of dynamic game theory, if you cross out the worst or the best, then the average candidate will pass anyway

b)again, from the point of view of dynamic game theory, if we cross out the worst, then the average candidate will pass anyway