Political Market Structure

James Anderson and Thomas Prusa

No 8371, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Many political markets are essentially uncontested, in the sense that one candidate raises little (or no) money and consequently has little chance of election. This presents a puzzle in the presence of apparently low barriers to entry. Using a variant of Baron (1989) we provide a theory encompassing both contested and uncontested markets. The essential addition is the presence of fixed costs of campaigning. We show that these may be quite small and yet constitute decisive barriers to entry.

JEL-codes: L0 (search for similar items in EconPapers)
Date: 2001-07
Note: IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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