The Role of Political Parties: An Analysis Based on Transaction Costs
This paper explores the proposition that political parties reduce the transaction costs of electoral participation. Political parties provide a low cost signal of a candidate's policies and personal characteristics and, in this way, reduce voters' information costs. With reference to 'transaction cost economics,' political parties offer an 'implicit contract' between voters and politicians and thereby reduce the scope for opportunism by politicians. This impact on transaction costs is important in any evaluation of public policy towards political parties. Copyright 1998 by Kluwer Academic Publishers
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, 1.
- Jones, Philip & Hudson, John, 1996. "Standardization and the costs of assessing quality," European Journal of Political Economy, Elsevier, vol. 12(2), pages 355-361, September.
- Maute, Manfred F. & Forrester, William Jr., 1991. "The effect of attribute qualities on consumer decision making: a causal model of external information search," Journal of Economic Psychology, Elsevier, vol. 12(4), pages 643-666, December.
- Wittman, Donald, 1989. "Why Democracies Produce Efficient Results," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1395-1424, December.
- Levitt, Steven D, 1994. "Using Repeat Challengers to Estimate the Effect of Campaign Spending on Election Outcomes in the U.S. House," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 777-98, August.
- George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
- Schram, Arthur & Sonnemans, Joep, 1996. "Why people vote: Experimental evidence," Journal of Economic Psychology, Elsevier, vol. 17(4), pages 417-442, August.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:94:y:1998:i:1-2:p:175-89. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.