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The logic of party coalitions with political activism and public financing

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  • Giuranno, Michele

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Abstract

This paper presents a model of party coalition formation between policy- motivated activists and office-seeking opportunists. In this framework, I con- sider how changes in party valence and public financing of political parties shape the equilibrium inside coalitions. Results show that, in equilibrium, op- portunists and activists have the same marginal rate of substitution between policy position and activists'contribution. An asymmetric worsening of one party's valence leads to divergence of its policy platform and a higher degree of activism. Furthermore, public financing of political parties drives activism or idealism out of politics. As a consequence, public financing is an important policy instrument to regulate the trade-o¤ between the degree of activism in politics and the independence of political parties from lobbying.

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File URL: http://polis.unipmn.it/pubbl/RePEc/uca/ucapdv/giuranno150.pdf
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Bibliographic Info

Paper provided by Institute of Public Policy and Public Choice - POLIS in its series POLIS Working Papers with number 134.

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Length: 28 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:uca:ucapdv:134

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Web page: http://polis.unipmn.it

Related research

Keywords: activists; idealism; lobbyists; coalition formation; Nash bargaining; party valence; polarization.;

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Cited by:
  1. Orso, Cristina Elisa, 2009. "Formal and informal sectors: Interactions between moneylenders and traditional banks in the rural Indian credit market," POLIS Working Papers 135, Institute of Public Policy and Public Choice - POLIS.
  2. Carla Marchese & Giovanni B. Ramello, 2011. "In the Beginning Was the Word. Now is the Copyright," Review of Law & Economics, De Gruyter, vol. 7(1), pages 12.

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