Campaigns, Political Mobility, and Communication
29 Pages Posted: 6 Nov 2009
Date Written: October 2009
We present a model of elections in which interest group donations allow candidates to shift policy positions. We show that if donations were prohibited, then a unique equilibrium regarding the platform choices of candidates would exist. Our game with financing of political campaigns exhibits two equilibria, depending on whether a majority of interest groups runs to support the leftist or rightist candidate. The equilibria generate a variety of new features of campaign games and may help identify the objective functions of candidates empirically.
Keywords: elections, campaign contributions, interest groups
JEL Classification: C72, D72
Suggested Citation: Suggested Citation