Abstract
In this paper we show that in a simple spatial model where the government is chosen under strict proportional rule, if the outcome function is a linear combination of parties’ positions, with coefficient equal to their shares of votes, essentially only a two-party equilibrium exists. The two parties taking a positive number of votes are the two extremist ones. Applications of this result include an extension of the well-known Alesina and Rosenthal model of divided government as well as a modified version of Besley and Coate’s model of representative democracy.
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De Sinopoli, F., Iannantuoni, G. A spatial voting model where proportional rule leads to two-party equilibria. Int J Game Theory 35, 267–286 (2007). https://doi.org/10.1007/s00182-006-0056-z
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DOI: https://doi.org/10.1007/s00182-006-0056-z