Vote-share Contracts and Democracy

Hans Gersbach

No 6497, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this paper we introduce vote-share contracts. Such contracts contain a vote-share threshold that incumbents must reach in order to be reelected. In a simple model, we illustrate the working of vote-share contracts. Such vote-share contracts curb socially detrimental incumbency advantages by improving the average ability level of re-elected politicians and also increase effort. We show that the socially optimal vote-share threshold for incumbents is larger than one half. Competing candidates offer vote-share contracts with socially optimal thresholds.

Keywords: Elections; Political contracts; Vote-share thresholds (search for similar items in EconPapers)
JEL-codes: D7 D82 H4 (search for similar items in EconPapers)
Date: 2007-09
New Economics Papers: this item is included in nep-cdm and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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