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Spatial Competition Between Two Candidates of Different Quality: The Effects of Candidate Ideology and Private Information

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  • Aragones, Enriqueta
  • Palfrey, Thomas R.

Abstract

This paper examines competition in a spatial model of two-candidate elections, where one candidate enjoys a quality advantage over the other candidate. The candidates care about winning and also have policy preferences. There is two-dimensional private information. Candidate ideal points as well as their tradeoffs between policy preferences and winning are private information. The distribution of this two-dimensional type is common knowledge. The location of the median voter's ideal point is uncertain, with a distribution that is commonly known by both candidates. Pure strategy equilibria always exist in this model. We characterize the effects of increased uncertainty about the median voter, the effect of candidate policy preferences, and the effects of changes in the distribution of private information. We prove that the distribution of candidate policies approaches the mixed equilibrium of Aragones and Palfrey (2002a), when both candidates' weights on policy preferences go to zero.

Suggested Citation

  • Aragones, Enriqueta & Palfrey, Thomas R., 2003. "Spatial Competition Between Two Candidates of Different Quality: The Effects of Candidate Ideology and Private Information," Working Papers 1169, California Institute of Technology, Division of the Humanities and Social Sciences.
    • Handle: RePEc:clt:sswopa:1169
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    Cited by:

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    2. Raphaël Soubeyran, 2009. "Does a Disadvantaged Candidate Choose an Extremist Position?," Annals of Economics and Statistics, GENES, issue 93-94, pages 301-326.
    3. Raphaël Soubeyran, 2006. "Valence Advantages and Public Goods Consumption: Does a Disadvantaged Candidate Choose an Extremist Position?," Working Papers 2006.84, Fondazione Eni Enrico Mattei.
    4. Soubeyran, Raphael, 2006. "Valence Advantages and Public Goods Consumption: Does a Disadvantaged Candidate Choose an Extremist Position?," Privatisation Regulation Corporate Governance Working Papers 12191, Fondazione Eni Enrico Mattei (FEEM).

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    Keywords

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    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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