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Extreme Idealism and Equilibrium in the Hotelling-Downs Model of Political Competition

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  • Ronayne, David

    (University of Warwick)

Abstract

In the classic Hotelling-Downs model of political competition there is (almost always) no pure strategy equilibrium with three or more strategic candidates where the distribution of voters’ preferred policies are single-peaked. I study the effect of introducing two idealist candidates who are non-strategic (i.e., fixed to their policy platform), to an unlimited number of potential strategic entrants. I present three results that hold for a non-degenerate class of cases: (i) In any equilibrium the idealists are the left-most and right-most candidates i.e., extremists; (ii) Hotelling’s Law fails: in any equilibrium, candidates do not share their policy platforms, which instead are spread across the policy space; (iii) A characterization for symmetric and asymmetric single-peaked distributions of voters’ ideal policy preferences. Equilibria where many strategic candidates enter exist only if the distribution of voter preferences is asymmetric.

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  • Ronayne, David, 2016. "Extreme Idealism and Equilibrium in the Hotelling-Downs Model of Political Competition," CRETA Online Discussion Paper Series 21, Centre for Research in Economic Theory and its Applications CRETA.
    • Handle: RePEc:wrk:wcreta:21
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    References listed on IDEAS

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    Cited by:

    1. Tarbush, Bassel, 2018. "Hotelling competition and the gamma distribution," Games and Economic Behavior, Elsevier, vol. 111(C), pages 222-240.

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    More about this item

    Keywords

    Hotelling ; political competition ; equilibrium existence ; idealism JEL classification numbers: C72; D72;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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