Question: 6 . HOTELLING'S MODEL ( 2 0 PTS ) Consider the Hotelling - Downs electoral competition model with four players, each chooses a policy position

6. HOTELLING'S MODEL (20PTS) Consider the Hotelling-Downs electoral competition model with four players, each chooses a policy position in the interval (0.1] to maximize their probability of winning the election. Now assume that the voters' ideal policies are distributed uniformly over [0,1].(This means that, for all 0< a < b <1, the proportion of the voters with ideal policies between a and b is equal to b - a. Thus, the median voter now has ideal policy 1.) n n n V O =v Done M (4) Is (1,1,1,1) a Nash equilibrium when there are four players seeking to maximize their vote share? Explain. (5pts

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