Case Study

Political Campaign Strategy Dilemma

Two political candidates in a tight election must independently decide their advertising strategy. They can either run a 'Positive Campaign' focusing on their own platform or an 'Attack Ad Campaign' criticizing their opponent. The likely outcomes are:

  1. If both run Positive Campaigns, they maintain their current standing with voters.
  2. If one runs Attack Ads while the other runs a Positive Campaign, the attacker gains a significant lead.
  3. If both run Attack Ad Campaigns, they both damage their public image, a worse outcome for both than if they had both been positive, but not as bad as being the only one attacked.

First, what outcome would be predicted by a model that assumes each candidate acts solely based on their own immediate self-interest to avoid the worst personal outcome? Second, provide and explain two distinct reasons why, in a real-world scenario, the candidates might mutually decide to run Positive Campaigns despite the risks.

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Updated 2025-07-22

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