Mackerels in the Moonlight: A Duopoly Model of Political Agency
I study political competition between two candidates who could differ in their ability, popularity, and ethics. In elections, each candidate proposes a flat (income) tax rate and a public good level. A high(er)-ability candidate can produce the public good using less funds. Collected taxes that are not used in public goods production are stolen by the elected politician. The voting decision is probabilistic; it depends on a candidate's fiscal policy and his popularity. I prove that the pure strategy Nash Equilibrium exists and that there are at most two separate equilibria. I also provide a fully solved example.
|Date of creation:||25 Apr 2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.suffolk.edu/college/2175.html|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roger B. Myerson, 1991.
"Effectiveness of Electoral Systems for Reducing Government Corruption: A Game-Theoretic Analysis,"
956, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Myerson Roger B., 1993. "Effectiveness of Electoral Systems for Reducing Government Corruption: A Game-Theoretic Analysis," Games and Economic Behavior, Elsevier, vol. 5(1), pages 118-132, January.
- Francesco Caselli & Massimo Morelli, 2000.
Discussion Paper / Institute for Empirical Macroeconomics
134, Federal Reserve Bank of Minneapolis.
- Grossman, G.M. & Helpman, E., 1992.
"Protection for Sale,"
21-92, Tel Aviv.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- George Warskett & Stanley Winer & Walter Hettich, 1998. "The Complexity of Tax Structure in Competitive Political Systems," International Tax and Public Finance, Springer, vol. 5(2), pages 123-151, May.
- Besley, Timothy & Smart, Michael, 2007.
"Fiscal restraints and voter welfare,"
Journal of Public Economics,
Elsevier, vol. 91(3-4), pages 755-773, April.
- Timothy Besley & Michael Smart, 2005. "Fiscal restraints and voter welfare," LSE Research Online Documents on Economics 3769, London School of Economics and Political Science, LSE Library.
- Timothy Besley & Michael Smart, 2005. "Fiscal Restraints and Voter Welfare," STICERD - Political Economy and Public Policy Paper Series 06, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- John Douglas Wilson, 1989. "An Optimal Tax Treatment Of Leviathan," Economics and Politics, Wiley Blackwell, vol. 1(2), pages 97-117, 07.
- repec:cup:cbooks:9780521027922 is not listed on IDEAS
- Evrenk, Haldun, 2008. "On the (In)Effectiveness of Some Commonly Proposed Anti-Corruption Reforms," Working Papers 2008-5, Suffolk University, Department of Economics.
- Szentes, Balazs & Rosenthal, Robert W., 2003. "Three-object two-bidder simultaneous auctions: chopsticks and tetrahedra," Games and Economic Behavior, Elsevier, vol. 44(1), pages 114-133, July.
- Michele Polo, . "Electoral competition and political rents," Working Papers 144, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- repec:cup:cbooks:9780521233293 is not listed on IDEAS
- Evrenk, Haldun, 2008. "A Game-Theoretic Explanation for the Persistence of Political Corruption," Working Papers 2008-3, Suffolk University, Department of Economics.
- John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
When requesting a correction, please mention this item's handle: RePEc:suf:wpaper:2008-4. 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: (Frank Conte)
If references are entirely missing, you can add them using this form.