Strategic Compromise in Contests with Two-Dimensional Policy Spaces
1 : University of Konstanz
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Policy reforms are frequently multifaceted. However in the lobbying literature most policies are taken as onedimensional.
This paper models policy reform using a political contest with endogenous policy proposals and two-dimensional policy spaces. The two dimensions give players the opportunity to trade off one factor over another to make the opposition less aggressive. As a result, players make strategic compromises in an attempt to augment their winning probability. This finding is verified empirically using a novel dataset on California legislation between 2008-2013.
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