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Contests with Incumbency Advantages: An Experiment Investigation of the Effect of Limits on Spending Behavior and Outcome

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  • HHironori Otsubo

    ()
    (Faculty of Economics, Soka University, Tokyo)

Abstract

This paper experimentally investigates the effect of limits on campaign spending and outcome in an electoral contest where two candidates, an incumbent and a challenger, compete for office in terms of the amount of campaign expenditure. The candidates are asymmetric only in that the incumbent wins the contest in case of a tie. Theory predicts that in the presence of such asymmetry spending limits put the challenger at a disadvantage and tightening the limits leads to further entrenchment of the incumbent. The experimental results confirmed the theoretical predictions regarding the effect of limits on campaign spending and outcome but yielded partial support to other predictions.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2012-020.

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Date of creation: 08 May 2012
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Handle: RePEc:jrp:jrpwrp:2012-020

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Keywords: Contest; All-pay auction; Spending limit; Incumbency advantage; Experiment;

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