HIGHLIGHTS
SUMMARY
Let us denote by x h ∈ the fraction of politicians choosing a hard policy and by y O ∈ the fraction of obeying citizens. Politicians` payoff is also positively affected by the fines collected from non-obeying citizens; i.e., Fσi (1 - y O ), where F > 0 is the monetary value of the fine, and σi ∈ is the probability of being fined when the citizen decides not to obey either the policy (h) or (s). One fixed point arises when i) the dominant strategy for citizens in both regimes is disobey; this is irrespectively . . .
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