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Spatial Equilibrium with Entry
Abstract
This paper examines spatial equilibrium in political competition when established parties choose their platforms competitively while rationally anticipating entry of a vote-maximizing third party. The resulting equilibrium is substantially different from the Hotelling “median” equilibrium. Established parties are spatially separated and third parties will generally lose the election. This provides one theoretical explanation for the stability of two-party systems, namely that non-cooperative behaviour between established parties can effectively prevent third parties from winning.
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Citations
Cited by
An Economic Model of Representative Democracy
Besley, T., & Coate, S. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355397555136 · Cited by 1,649
Voter ideology in western democracies, 1946–1989
Kim, H., & Fording, R. C. (1998) · European Journal of Political Research · doi:10.1023/a:1006882806861 · Cited by 323
The 2000 Presidential Election and the Foundations of Party Politics
Johnston, R., Hagen, M. G., & Jamieson, K. H. (2004) · Cambridge University Press eBooks · doi:10.1017/cbo9780511756207 · Cited by 272
Leech, B. L. (2010) · The Oxford Handbook of American Political Parties and Interest Groups · doi:10.1093/oxfordhb/9780199542628.003.0028 · Cited by 91
EL COSTO DE COORDINAR: NÚMERO DE CANDIDATOS PRESIDENCIALES EN AMÉRICA LATINA 1993-2010
LUJÁN, D. (2017) · Revista de ciencia política (Santiago) · doi:10.4067/s0718-090x2017000100002 · Cited by 7
Metadata
- Authors
- Palfrey, T. R.
- Venue
- The Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 1984-01
- Volume
- 51
- Issue
- 1
- Pages
- 139
- ISSN
- 0034-6527 (ISSN-L)
- OpenAlex
- W2042233114
- Cited by
- 429
- References
- 0
- FWCI
- 4.52
- Type
- journal article
- Language
- en
- Open access
- closed
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- Palfrey, T. R. (1984). Spatial Equilibrium with Entry. The Review of Economic Studies. https://doi.org/10.2307/2297710
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.