Extreme parties and political rents
We study the rent-seeking behaviour of political parties in a proportional representation system, where the final policy choice of the parliament is a weighted average of parties' policy positions, weights being their vote shares. We find that parties' policy preferences and their rent levels are strongly linked. Our main result is that an extreme party chooses a higher rent level than a moderate party, except in some cases of unlikely distributions of parties. An extreme party has more policy influence than a moderate party since it pulls the final policy towards its position more than a moderate party. Hence, a voter is ready to pay more rents to an extreme party in exchange of a greater policy influence. Furthermore, note that the voter does not need to be an extremist to vote for an extreme party. She is acting strategically in order to influence the final policy in her advantage as much as possible. In turn, this strategic behaviour of voters allow more extreme parties to earn higher rent levels.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Platz der Göttinger Sieben 3, 37073 Göttingen|
Web page: http://www.cege.wiso.uni-goettingen.de/
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.:
- John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, 2003.
"Electoral Rules and Corruption,"
Journal of the European Economic Association,
MIT Press, vol. 1(4), pages 958-989, 06.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, 2001. "Electoral Rules and Corruption," NBER Working Papers 8154, National Bureau of Economic Research, Inc.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, . "Electoral Rules and Corruption," Working Papers 182, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Persson, Torsten & Tabellini, Guido & Trebbi, Francesco, 2001. "Electoral Rules and Corruption," CEPR Discussion Papers 2741, C.E.P.R. Discussion Papers.
- Torsten Persson & Guido Tabellini & Francesco Trebbi, 2001. "Electoral Rules and Corruption," CESifo Working Paper Series 416, CESifo Group Munich.
- G. Bingham Powell Jr, 1989. "Constitutional Design and Citizen Electoral Control," Journal of Theoretical Politics, , vol. 1(2), pages 107-130, April.
- Neven, Damien J., 1987. "Endogenous sequential entry in a spatial model," International Journal of Industrial Organization, Elsevier, vol. 5(4), pages 419-434.
- DE SINOPOLI, Francesco & IANNANTUONI, Giovanna, 2000.
"A spatial voting model where proportional rule leads to two-party equilibria,"
CORE Discussion Papers
2000037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Francesco Sinopoli & Giovanna Iannantuoni, 2007. "A spatial voting model where proportional rule leads to two-party equilibria," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(2), pages 267-286, January.
- Francesco De Sinopoli & Giovanna Iannantuoni, 2003. "A Spatial Voting Model Where Proportional Rule Leads to Two-Party Equilibria," CEIS Research Paper 31, Tor Vergata University, CEIS.
- Matias Iaryczower & Andrea Mattozzi, 2012. "The pro-competitive effect of campaign limits in non-majoritarian elections," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(3), pages 591-619, April.
- David P. Baron & Daniel Diermeier, 2001. "Elections, Governments, and Parliaments in Proportional Representation Systems," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 933-967.
- Kunicov , Jana & Rose-Ackerman, Susan, 2005. "Electoral Rules and Constitutional Structures as Constraints on Corruption," British Journal of Political Science, Cambridge University Press, vol. 35(04), pages 573-606, October.
When requesting a correction, please mention this item's handle: RePEc:zbw:cegedp:161. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.