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On the Influence of Extreme Parties in Electoral Competition with Policy-Motivated Candidates

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  • Casamatta, Georges
  • De Donder, Philippe

Abstract

We study and compare equilibrium platforms in models of one-dimensional electoral competition with two and four policy-motivated parties. We first analyse the plurality game, where the party that gets the most votes is elected and implements its proposed platform. Restrictions on the set of credible announcements are needed to get existence of equilibria. Comparing equilibria with two and four parties, we obtain that moderate parties react to the introduction of extreme parties by proposing the same or more extreme equilibrium platforms. We then study the proportional system, where the policy implemented is a weighted sum of the proposals, with the voting shares as weights. Here, the existence of extreme parties leads moderate ones to choose more centrist platforms.

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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 161.

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Date of creation: 2003
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Publication status: Published in Social Choice and Welfare, vol.�25, n°1, octobre 2005, p.�1-29.
Handle: RePEc:ide:wpaper:585

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  1. Martin J. Osborne, 1992. "Candidate Positioning and Entry in a Political Competition," Department of Economics Working Papers 1992-02, McMaster University.
  2. Enriqueta Aragonés & Andrew Postlewaite, 2000. "Campaign rhetoric: A model of reputation," Economics Working Papers 525, Department of Economics and Business, Universitat Pompeu Fabra.
  3. Ignacio OrtuÓo-OrtÎn, 1997. "A spatial model of political competition and proportional representation," Social Choice and Welfare, Springer, vol. 14(3), pages 427-438.
  4. Palfrey, Thomas R, 1984. "Spatial Equilibrium with Entry," Review of Economic Studies, Wiley Blackwell, vol. 51(1), pages 139-56, January.
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Cited by:
  1. Drouvelis, Michalis & Saporiti, Alejandro & Vriend, Nicolaas J., 2014. "Political motivations and electoral competition: Equilibrium analysis and experimental evidence," Games and Economic Behavior, Elsevier, vol. 83(C), pages 86-115.
  2. repec:ebl:ecbull:v:4:y:2006:i:31:p:1-8 is not listed on IDEAS
  3. Selim Ergun, 2008. "Centrist's Curse? An Electoral Competition Model with Credibility Constraints," ThE Papers 08/06, Department of Economic Theory and Economic History of the University of Granada..
  4. Machado, Fabiana, 2011. "Inequality, Uncertainty, and Redistribution," MPRA Paper 35665, University Library of Munich, Germany.
  5. Raphaël Soubeyran, 2006. "When Inertia Generates Political Cycles," Economics Bulletin, AccessEcon, vol. 4(31), pages 1-8.

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