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Corruption, Competition, and Contracts: A Model of Vote Buying

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  • Mr. Felix J Vardy
  • Mr. John Morgan

Abstract

In the presence of competing interest groups, this paper examines how the form of votebuying contracts affects policy outcomes. We study contracts contingent upon individual votes, policy outcomes, and/or vote shares. Voters either care about their individual votes, or about the policy outcome. We find that vote buying is cheaper when what can be contracted upon coincides with what voters care about. Vote buying becomes extremely costly, or even impossible, when there is no such coincidence. Finally, vote buying is extremely cheap, or even free, when contracts can be contingent upon both individual votes and vote shares.

Suggested Citation

  • Mr. Felix J Vardy & Mr. John Morgan, 2006. "Corruption, Competition, and Contracts: A Model of Vote Buying," IMF Working Papers 2006/011, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/011
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18729
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    References listed on IDEAS

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    1. B. Douglas Bernheim & Michael D. Whinston, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(1), pages 1-31.
    2. Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2004. "Vote Buying," Discussion Papers 1386, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
      • Jackson, Matthew O. & Dekel, Eddie & Wolinsky, Asher, 2005. "Vote buying," Working Papers 1215, California Institute of Technology, Division of the Humanities and Social Sciences.
      • Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2005. "Vote Buying," Others 0503006, University Library of Munich, Germany.
    3. Groseclose, Tim & Snyder, James M., 1996. "Buying Supermajorities," American Political Science Review, Cambridge University Press, vol. 90(2), pages 303-315, June.
    4. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
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    Cited by:

    1. Ernesto Dal Bó, 2007. "Bribing Voters," American Journal of Political Science, John Wiley & Sons, vol. 51(4), pages 789-803, October.

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