In Berserk, Two Political Parties Vie for Control of the Country

question 152

Essay

In Berserk, two political parties vie for control of the country. Each political party, when it is not in power, has a tendency to call general strikes to influence the policy of the ruling party. Evaluate this strategy in the context of a multiple-period game. Is it possible, in this situation, that a multiple-period game reduces, rather than enhances, social well-being? What would have to happen in this game to improve social welfare if a tit-for-tat strategy is used?

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Definitions:

Marriage Penalty

In the tax system, the phenomenon that a two-income married couple pays more tax than the sum of two single people making the same money.

Two-Income Married Couples

Households in which both spouses earn income from employment.

Taxes

Mandatory financial charges or other types of levies imposed upon a taxpayer by a governmental organization.

Dividend Income

Earnings received from owning shares of stock in a corporation, typically paid out from the company's profits.