(Electoral competition with asymmetric voters’ preferences) Consider a variant of Hotelling’s…

(Electoral competition with asymmetric voters’ preferences) Consider a variant of Hotelling’s model in which voters’s preferences are asymmetric. Specifically, suppose that each voter cares twice as much about policy differences to the left of her favorite position than about policy differences to the right of her favorite position. How does this affect the Nash equilibrium? In the model considered so far, no candidate has the option of staying out of the race. Suppose that we give each candidate this option; assume that it is better than losing and worse than tying for first place. Then the Nash equilibrium remains as before: both players enter the race and choose the position m. The direct argument differs from the one before only in that in addition we need to check that there is no equilibrium in which one or both of the candidates stays out of the race. If one candidate stays out then, given the other candidate’s position, she can enter and either win outright or tie for first place. If both candidates stay out, then either candidate can enter and win outright. The next exercise asks you to consider the Nash equilibria of this variant of the model when there are three candidates.