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Political Motivations and Electoral Competition: Equilibrium Analysis and Experimental Evidence

  • Michalis Drouvelis
  • Alejandro Saporiti
  • Nicolaas J. Vriend

classical one-dimensional election game with two candidates. These candidates are interested in power and ideology, but their weights on these two motives are not necessarily identical. Apart from obtaining the well known median voter result and the two-sided policy differentiation outcome, the paper uncovers the existence of two new equilibrium configurations, called 'one-sided' and 'probabilistic' policy differentiation, respectively. Our analysis shows how these equilibrium configurations depend on the relative interests in power (resp., ideology) and the uncertainty about voters' preferences. The theoretical predictions are supported by the data collected from a laboratory experiment, as we observe convergence to the Nash equilibrium values at the aggregate as well as at the individual levels in all treatments, and the comparative statics effects across treatments are as predicted by the theory.

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Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 1119.

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Date of creation: 2011
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Handle: RePEc:man:sespap:1119
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