IDEAS home Printed from
   My bibliography  Save this paper

Nash Equilibrium and Party Polarization in an Electoral Competition Model




We study the existence problem of Nash equilibrium as well as party polarization in an electoral competition model. In our model, political parties also value holding office (office rent) in addition to maximizing their party members’ utility. A class of models with an uncertainty about the median voter position has been increasingly important and Drouvelis, Saporiti and Vriend (2014) present an experimental study to support a model with office rent. But the inclusion of office rent renders the payoff of each party discontinuous. This makes it difficult to apply a usual fixed point argument to prove the existence of Nash equilibrium. By using a recently developed concept, C-security in McLennan, Monteiro and Tourky (2011), we provide conditions under which a pure strategy Nash equilibrium (PSE) or a mixed strategy Nash equilibrium (MSE) exists within a fairly general setting, and further the analysis by presenting conditions under which various types of policy choices, including polarization, arise in equilibrium.

Suggested Citation

  • Shino Takayama & Yuki Tamura & Terence Yeo, 2016. "Nash Equilibrium and Party Polarization in an Electoral Competition Model," Discussion Papers Series 575, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:575

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Drouvelis, Michalis & Saporiti, Alejandro & Vriend, Nicolaas J., 2014. "Political motivations and electoral competition: Equilibrium analysis and experimental evidence," Games and Economic Behavior, Elsevier, vol. 83(C), pages 86-115.
    2. Shino Takayama, 2007. "Office-seeking politicians, interest groups and split contributions in a campaign finance model," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(4), pages 297-314.
    3. Eyster, Erik & Kittsteiner, Thomas, 2007. "Party platforms in electoral competition with heterogeneous constituencies," Theoretical Economics, Econometric Society, vol. 2(1), pages 41-70, March.
    4. Shino Takayama, 2014. "A Model of Two-stage Electoral Competition with Strategic Voters," Discussion Papers Series 525, School of Economics, University of Queensland, Australia.
    5. Alejandro Saporiti, 2008. "Existence and Uniqueness of Nash Equilibrium in Electoral Competition Games: The Hybrid Case," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 827-857, October.
    6. Ingemar Hansson & Charles Stuart, 1984. "Voting competitions with interested politicians: Platforms do not converge to the preferences of the median voter," Public Choice, Springer, vol. 44(3), pages 431-441, January.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Noncooperative games; electoral competition; existence of equilibrium;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qld:uq2004:575. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SOE IT). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.