@article{27956,
  author = {Matias Iaryczower and Andrea Mattozzi},
  title = {The Pro-Competitive Effect of Campaign Limits in Non-Majoritarian Elections},
  abstract = { <p>We study a model of elections in non-majoritarian systems that captures~the link between competition in policies and competition in campaign spending. We~argue that the overall competitiveness of the political arena depends on both the endogenous~number of parties contesting the election and the endogenous level of campaign~spending. These two dimensions are linked together through their combined effect on~the total equilibrium level of political rents.We illustrate the key insights of the model~with an analysis of the competitive effects of campaign spending limits. We show that~under some conditions spending caps can be pro-competitive, leading to an increase~in the number of parties contesting the elections.</p> },
  year = {2012},
  journal = {Economic Theory},
  volume = {49},
  number = {3},
  pages = {591-619},
  language = {eng},
}