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Greed as a Source of Polarization

Author

Listed:
  • Mark Wright

    (UCLA)

  • Igor Livshits

    (University of Western Ontario)

Abstract

Political contributions appear to be subject to an obvious public goods problem. Free riding might be expected to lead to polarization of contributions. We show that it is not true in general. In fact, in the most obvious model, with arbitrary number of candidates, we get a median contributor theorem. We then show how some polarization can be revived by adding some spending from campaign contributions on private consumption by the agent. We then use the model to analyze effects of campaign finance reforms including crackdowns on spending not directly on advertising.

Suggested Citation

  • Mark Wright & Igor Livshits, 2007. "Greed as a Source of Polarization," 2007 Meeting Papers 765, Society for Economic Dynamics.
    • Handle: RePEc:red:sed007:765
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    Cited by:

    1. Tarhan, Simge, 2010. "Campaign Contributions and Political Polarization," MPRA Paper 29617, University Library of Munich, Germany, revised 15 Mar 2011.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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