Solve the subgame on the right, where the Religious Party is radical, as if there were no uncertainty. What is the subgame perfect Nash equilibrium? Note: write the equilibrium in the form (Regime’s move; Radical Party’s move).
A. Cancel elections; Pursue radical policy
B. Hold elections; Pursue moderate policy
C. Hold elections; Pursue radical policy
D. Cancel elections; Pursue moderate policy
A. Cancel elections; Pursue radical policy
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