Now, Let's Ask What Happens When the Parties Play a Game

question 5

Multiple Choice

Now, let's ask what happens when the parties play a game like the one in Figure 1,
Figure 1. The Electoral Reform Game-Example 1
except that the benefit to the large party of having disproportional rules is much less, and the penalties to the smaller party from disproportional electoral rules are lower. This might be because the smaller party has been attracting a larger electorate, whereas the large party has been losing voters. This new situation is modeled in Figure 3 below. Using Figure 3, answer the following questions.
Figure 3. The Electoral Reform Game-Example 2

-Compare your answers to the questions that asked you to predict the behavior of the two parties, given the particular game being examined (Questions 46 and 50) . What does your analysis of the two games say about the conditions under which politicians who benefit from existing electoral laws are likely to support reforms that will help other parties?

• A) Large parties will never support reforms.
• B) If a large party is losing its size advantage and there is an electoral advantage from being seen as a reformer, then it will support the reform.
• C) Large parties will always support reforms.
• D) Can't say based on the information given.

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Definitions:

Reserves

Assets held by a bank, institution, or government to meet future liabilities, emergencies, or compliance requirements.

Trade Deficit

A situation where a country's imports exceed its exports over a certain period, indicating that it is importing more goods and services than it is exporting.

Foreign Hands

Refers to the involvement or ownership by individuals, companies, or governments from other countries.

American Dollars

refer to the currency of the United States, used as the primary form of money in the country and a major global reserve currency.