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Majority-efficiency and Competition-efficiency in a Binary Policy Model

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  • Stefan Krasa
  • Mattias Polborn

Abstract

We introduce a general framework in which politicians choose a (possibly infinite) sequence of binary policies. The two competing candidates are exogenously committed to particular actions on a subset of these issues, while they can choose any policy for the remaining issues to maximize their winning probability. Citizens have general preferences over policies, and the distribution of preferences may be uncertain. We show that a special case of the model, the weighted-issue model, provides a tractable multidimensional model of candidate competition that can generate (i) policy divergence in pure and mixed strategies, (ii) adoption of minority positions, and (iii) inefficient outcomes.

Suggested Citation

  • Stefan Krasa & Mattias Polborn, 2007. "Majority-efficiency and Competition-efficiency in a Binary Policy Model," CESifo Working Paper Series 1958, CESifo.
    • Handle: RePEc:ces:ceswps:_1958
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    References listed on IDEAS

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    Cited by:

    1. Krasa, Stefan & Polborn, Mattias, 2010. "Competition between Specialized Candidates," American Political Science Review, Cambridge University Press, vol. 104(4), pages 745-765, November.
    2. Amegashie, J. Atsu & Ouattara, Bazoumanna & Strobl, Eric, 2007. "Moral Hazard and the Composition of Transfers: Theory with an Application to Foreign Aid," MPRA Paper 3158, University Library of Munich, Germany, revised 06 May 2007.

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