In this paper we show that in a simple spatial model where the government is chosen under strict proportional rule, if the outcome function is a linear combination of parties' positions, with coefficients equal to their share of seats, only a two-party voting equilibrium basically exists. The two parties taking a positive number of votes are the two extremist ones. Applications of this result include an extension of the well-known Alesina and Rosenthal's model of divided government as well as a modified version of Besley and Coate's model of representative democracy. This result cannot be extended to a general outcome function but, however, when the policy is determined by the two leading parties, in pure strategies, only two-party equilibria can emerge. Analogous result holds for coalitions of parties.
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
2000037.
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Alesina, Alberto & Rosenthal, Howard, 1996.
"A Theory of Divided Government,"
Econometrica,
Econometric Society, vol. 64(6), pages 1311-41, November.
[Downloadable!] (restricted)
Roger B. Myerson & Robert J. Weber, 1988.
"A Theory of Voting Equilibria,"
Discussion Papers
782, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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