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Majority-efficiency and Competition-efficiency in a Binary Policy Model

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Author Info
Stefan Krasa ()
Mattias Polborn ()

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Abstract

We introduce a general framework in which politicians choose a (possibly infinite) sequence of binary policies. The two competing candidates are exogenously committed to particular actions on a subset of these issues, while they can choose any policy for the remaining issues to maximize their winning probability. Citizens have general preferences over policies, and the distribution of preferences may be uncertain. We show that a special case of the model, the weighted-issue model, provides a tractable multidimensional model of candidate competition that can generate (i) policy divergence in pure and mixed strategies, (ii) adoption of minority positions, and (iii) inefficient outcomes.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1958.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_1958

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Related research
Keywords: multidimensional policy; voting; citizen-candidate; normative analysis of political competition;

Find related papers by JEL classification:
D60 - Microeconomics - - Welfare Economics - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

References listed on IDEAS
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  1. Martin J. Osborne, 1995. "Spatial Models of Political Competition under Plurality Rule: A Survey of Some Explanations of the Number of Candidates and the Positions They Take," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 261-301, May. [Downloadable!] (restricted)
  2. Faruk Gul & Wolfgang Pesendorfer, 2006. "Partisan Politics and Aggregation Failure with Ignorant Voters," Levine's Bibliography 122247000000000828, UCLA Department of Economics. [Downloadable!]
  3. Bernhardt, Dan & Krasa, Stefan & Polborn, Mattias, 2008. "Political polarization and the electoral effects of media bias," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1092-1104, June. [Downloadable!] (restricted)
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  4. Kittsteiner, Thomas & Eyster, Erik, 2007. "Party platforms in electoral competition with heterogeneous constituencies," Theoretical Economics, Society for Economic Theory, vol. 2(1), pages 41-70, March. [Downloadable!]
  5. Osborne, Martin J & Slivinski, Al, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 65-96, February. [Downloadable!] (restricted)
    Other versions:
  6. Torsten Persson & Guido Tabellini, 2002. "Political Economics: Explaining Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661314, January.
  7. Navin Kartik & R. Preston McAfee, 2007. "Signaling Character in Electoral Competition," American Economic Review, American Economic Association, vol. 97(3), pages 852-870, June. [Downloadable!]
  8. Palfrey, Thomas R, 1984. "Spatial Equilibrium with Entry," Review of Economic Studies, Blackwell Publishing, vol. 51(1), pages 139-56, January. [Downloadable!] (restricted)
  9. Ernesto Dal Bo & Pedro Dal Bo & Jason Snyder, . "Political Dynasties," Working Papers 2006-15, Brown University, Department of Economics. [Downloadable!]
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  10. Micael Castanheira, 2003. "Why Vote For Losers?," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1207-1238, 09. [Downloadable!] (restricted)
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  11. Caplin, Andrew S & Nalebuff, Barry J, 1988. "On 64%-Majority Rule," Econometrica, Econometric Society, vol. 56(4), pages 787-814, July. [Downloadable!] (restricted)
  12. Lindbeck, Assar & Weibull, Jorgen W., 1993. "A model of political equilibrium in a representative democracy," Journal of Public Economics, Elsevier, vol. 51(2), pages 195-209, June. [Downloadable!] (restricted)
  13. Aragones, Enriqueta & Palfrey, Thomas R., 2002. "Mixed Equilibrium in a Downsian Model with a Favored Candidate," Journal of Economic Theory, Elsevier, vol. 103(1), pages 131-161, March. [Downloadable!] (restricted)
    Other versions:
  14. Martinelli, Cesar, 2001. " Elections with Privately Informed Parties and Voters," Public Choice, Springer, vol. 108(1-2), pages 147-67, July. [Downloadable!] (restricted)
  15. Steven Callander, 2005. "Electoral Competition in Heterogeneous Districts," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 1116-1145, October.
  16. Besley, Timothy & Coate, Stephen, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 85-114, February.
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