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Now, suppose the large party controls which bills are voted on (perhaps because it controls the relevant committee in the legislature) . The game below is similar to the one above, but now the large party can choose to propose a reform (in which case the parties play a version of the game above) , or they can block a reform bill before it gets to the floor (in which case they compete against the small party under existing laws) . Answer the following questions.
Figure 2: The Electoral Reform Game-When the Large Party Controls the Legislative Agenda
-What strategy combinations form a subgame perfect Nash equilibrium to the above game? Hint: use the form (Large's move at first node, Large's move at second node; Small's move at top node, Small's move at bottom node) .
Competition
The rivalry between businesses or individuals for resources, market share, or superiority in a particular field.
Power Avoidance
A cultural value indicating a society's tolerance for unequal distribution of power, and its members' behavioral response to minimize or avoid such inequalities.
Ambiguity
Ambiguity is the quality of being open to more than one interpretation, lacking clarity, and leading to uncertainty or confusion.
Unpredictability
The extent to which events or behaviors cannot be anticipated due to a lack of consistent patterns or information.
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