Economic Theory

, Volume 49, Issue 3, pp 591–619

The pro-competitive effect of campaign limits in non-majoritarian elections

Symposium

DOI: 10.1007/s00199-011-0613-y

Cite this article as:
Iaryczower, M. & Mattozzi, A. Econ Theory (2012) 49: 591. doi:10.1007/s00199-011-0613-y

Abstract

We study a model of elections in non-majoritarian systems that captures the link between competition in policies and competition in campaign spending. We argue that the overall competitiveness of the political arena depends on both the endogenous number of parties contesting the election and the endogenous level of campaign spending. These two dimensions are linked together through their combined effect on the total equilibrium level of political rents. We illustrate the key insights of the model with an analysis of the competitive effects of campaign spending limits. We show that under some conditions spending caps can be pro-competitive, leading to an increase in the number of parties contesting the elections.

Keywords

Campaign spendingElectionsCampaign limitsPolitical parties

JEL Classification

D72D78C72

Copyright information

© Springer-Verlag 2011

Authors and Affiliations

  1. 1.Department of PoliticsPrinceton UniversityPrincetonUSA
  2. 2.MOVE and Universitat Autónoma de BarcelonaBarcelonaSpain