Political compromise and endogenous formation of coalitions
Ignacio Ortuno-Ortin and
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Ignacio Ortuno-Ortin: Department of Economics and IVIE, University of Alicante, E-03080 Alicante, Spain
Anke Gerber: IMW, University of Bielefeld, Postfach 10 01 31, D-33501 Bielefeld, Germany
Authors registered in the RePEc Author Service: Ignacio Ortuno Ortin
Social Choice and Welfare, 1998, vol. 15, issue 3, 445-454
A one-dimensional model of spatial political competition with endogenous party formation is developed. It is proved that at equilibrium there are only two parties. These parties propose alternatives in the extreme positions of the policy space. The adopted policy, however, is a compromise between these two extremes.
Note: Received: 28 May 1996 / Accepted: 5 February 1997
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