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Political Competition Each of 2 political candidates chooses a policy position x e l0, 1: Voters (there is a continuum of them) are uniformly distributed on [0,1]; each votes for whichever candidate chooses a position closest to him. (So for example, if candidate 1 chooses x and candidate 2 chooses 2,then all voters abovevote for candidate 2, all below vote for candidate 1). The candidate with the most votes wins; in case of a tie, each wins with positive probability. A candidates payoff is 1 if he wins, 0 if he loses. Find all NE of the game. (Note: a NE is a pair (x;x2) such that, given the opponents policy choice, neither candidate wishes to change his position). OW

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