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Political compromise and endogenous formation of coalitions

Author

Listed:
  • Anke Gerber

    (Fachbereich Volkswirtschaftslehre)

  • Ignacio Ortuño Ortín

    (Universidad de Alicante)

Abstract

A one-dimensional model of spatial political competition with endogenous party formation is developed. It is proved that at equilibrium there are only two parties. These parties propose alternatives in the extreme position s of the policy space. The adopted policy, however, is a compromise between these two extremes.

Suggested Citation

  • Anke Gerber & Ignacio Ortuño Ortín, 1996. "Political compromise and endogenous formation of coalitions," Working Papers. Serie AD 1996-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:1996-24
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1996-24.pdf
    File Function: Fisrt version / Primera version, 1996
    Download Restriction: no
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