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Figure 1 illustrates an election in which there are seven voters (A, B, C, D, E, F, G) arrayed along a single left-right issue dimension that runs from 0 (most left) to 10 (most right) . Each voter is assumed to have a single-peaked preference ordering over the issue dimension and to vote for the party that is located closest to her ideal point. The voters are participating in a majority rule election in which there are two parties, P1 and P2, competing for office. These parties can be thought of as "office-seeking" parties since they only care about winning the election and getting into office.
Figure 1: Illustrating the Median Voter Theorem
-Let's suppose that P1 locates at Position 2 on the left-right issue dimension and that P2 locates at Position 7. Who wins the election in the situation illustrated by Figure 1?
Punitive Fines
Financial penalties imposed by a court, not to compensate the plaintiff, but to punish the defendant and deter future misconduct.
Ultramares Doctrine
A legal principle that limits the liability of auditors to third parties, based on the notion that auditors should only be held liable for fraud or gross negligence.
Recent Years
Refers to the period encompassing the last few years leading up to the current date, typically indicating a focus on contemporary or near-past events or trends.
Contractual Obligation
A contractual obligation is a legal duty derived from a contract, requiring a party to perform or refrain from performing certain actions.
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