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Extreme idealism and equilibrium in the Hotelling–Downs model of political competition

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  • David Ronayne

    (University of Oxford)

Abstract

In the classic Hotelling–Downs model of political competition, no pure strategy equilibrium with three or more strategic candidates exists when the distribution of voters’ preferred policies is unimodal. I study the effect of introducing two idealist candidates to the model who are non-strategic (i.e., fixed to their policy platforms), while allowing for an unlimited number of strategic candidates. Doing so, I show that equilibrium is restored for a non-degenerate set of unimodal distributions. In addition, the equilibria have the following features: (1) the left-most and right-most candidates (i.e., extremists) are idealists; (2) strategic candidates never share their policy platforms, which instead are spread out across the policy space; and (3) if more than one strategic candidate enters, the distribution of voter preferences must be asymmetric. I also show that equilibria can accommodate idealist fringes of candidates toward the extremes of the political spectrum.

Suggested Citation

  • David Ronayne, 2018. "Extreme idealism and equilibrium in the Hotelling–Downs model of political competition," Public Choice, Springer, vol. 176(3), pages 389-403, September.
    • Handle: RePEc:kap:pubcho:v:176:y:2018:i:3:d:10.1007_s11127-018-0556-y
    DOI: 10.1007/s11127-018-0556-y
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    Cited by:

    1. Tarbush, Bassel, 2018. "Hotelling competition and the gamma distribution," Games and Economic Behavior, Elsevier, vol. 111(C), pages 222-240.

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    More about this item

    Keywords

    Hotelling–Downs; Political competition; Equilibrium existence; Idealism;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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