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Party Formation and Competition

Daniel Ladley () and James Rockey

No 10/17, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: In the majority of democratic political systems, districts elect representatives, who form coalitions, which determine policies. In this paper we present a model which captures this process: A citizen-candidate model with multiple policy dimensions in which elected representatives endogenously choose to form parties. Numerical analysis shows that in equilibrium this model produces qualitatively realistic outcomes which replicate key features of cross-country empirical data, including variation consistent with Duverger's law. The numbers of policy dimensions and representatives elected per district are shown to determine the number, size, and relative locations of parties. Whilst multi-member district systems are found to reduce welfare.

Keywords: Citizen-Candidate Model; Political Competition; Party Formation; Duverger’s Law; Computer Simulation (search for similar items in EconPapers)
JEL-codes: C63 D72 (search for similar items in EconPapers)
Date: 2010-05, Revised 2014-03
New Economics Papers: this item is included in nep-cdm and nep-pol
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