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Endogenous Party Formation in a Model of Representative Democracy

  • Marco Haan

    (University of Groningen)

We extend the citizen candidate framework by allowing for endogenous party formation. When a party is formed, any member of that party that wants to be a candidate in the election, first has to run in the primary election of her party. We show that in equilibrium one left-wing and one right-wing party will be formed. Also, there may be a range of tiny centrist parties. At most one group of extreme citizens may not be a member of any party. For each party, at most one candidate runs in its primary election. There is a range of equilibria in which one candidate runs in the general election, but we find a unique two-candidate equilibrium. We thus show that allowing for parties to form severely restricts the range of possible equilibria in the citizen candidate model.

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Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 0598.

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Date of creation: 01 Aug 2000
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Handle: RePEc:ecm:wc2000:0598
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  1. Martin J. Osborne & Al Slivinksi, 1995. "A Model of Political Competition with Citizen-Candidates," Department of Economics Working Papers 1995-01, McMaster University.
  2. Caplin, Andrew & Nalebuff, Barry, 1997. "Competition among Institutions," Journal of Economic Theory, Elsevier, vol. 72(2), pages 306-342, February.
  3. Eaton, B Curtis & Lipsey, Richard G, 1975. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," Review of Economic Studies, Wiley Blackwell, vol. 42(1), pages 27-49, January.
  4. Caillaud, B. & Tirole, J., 1999. "Party governance and ideological bias," European Economic Review, Elsevier, vol. 43(4-6), pages 779-789, April.
  5. Besley, Timothy & Coate, Stephen, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 85-114, February.
  6. Martin J. Osborne, 1995. "Spatial Models of Political Competition under Plurality Rule: A Survey of Some Explanations of the Number of Candidates and the Positions They Take," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 261-301, May.
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