Bol, Damien and Matakos, Konstantinos and Troumpounis, Orestis and Xefteris, Dimitrios (2019) Electoral Rules, Strategic Entry and Polarization. Journal of Public Economics, 178: 104065. ISSN 0047-2727
main.pdf - Accepted Version
Available under License Creative Commons Attribution-NonCommercial-NoDerivs.
Download (714kB)
Abstract
How does electoral rule disproportionality affect the structure of the party system (i.e. the number and the policy platforms of the competing parties)? By studying a model where both party entry and platform choice are endogenous we are able to provide a unified theory: An increasing electoral rule disproportionality exhibits: a) a first-order negative effect on platform polarization, b) a second-order negative effect on the number of parties (as polarization decreases, centrist parties are squeezed between other contenders and prefer not to enter), and c) an additional third-order negative effect on polarization via the reduction of the number of parties. We then conduct a laboratory experiment and strongly confirm the theoretical predictions of the model.