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Political Competition with Endogenous Party Formation and Citizen Activists

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  • Emanuel Hansen

Abstract

This paper studies the effects of endogenous party formation on political platforms. It develops a model in which parties allow like-minded citizens to, first, share the cost of running in a public election and, second, coordinate on a policy platform. The paper characterizes the set of political equilibria with two competing parties and with one uncontested party. In two-party equilibria, the distance between both platforms is always positive but limited, in contrast to the median voter model and the citizen candidate model. In one-party equilibria, the median voter can be worse off than in all equilibria with two competing parties.

Suggested Citation

  • Emanuel Hansen, 2022. "Political Competition with Endogenous Party Formation and Citizen Activists," American Economic Journal: Microeconomics, American Economic Association, vol. 14(3), pages 35-75, August.
  • Handle: RePEc:aea:aejmic:v:14:y:2022:i:3:p:35-75
    DOI: 10.1257/mic.20200041
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    More about this item

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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