Parties as Utility Maximizers

Abstract

The article introduces two models of political party decision making. Both models assume that the parties are solely interested in policy and that winning the election is just a means to that end. In one, the parties are competitive, while in the other the parties collude. The main result, in either case, is that the parties tend to be unresponsive to the interests of the voters.The models are analyzed in an intransitive case (an election concerned only with income distribution) and a transitive one (an election where all political attitudes can be put on a left-right continuum), and under the assumptions of perfect and imperfect information.With perfect information the intransitive case results in the parties ending up with all the income; while in the single peaked case neither party will have a position to the left (right) of the left (right) party's most preferred position whatever the attitudes of the voters.Finally it is shown that it is rational for the parties to collude and present similar platforms.