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Scale economies and rent-seeking in legislative parties

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  • Kenneth Koford

Abstract

This paper examines equilibrium legislative party size, based upon scale economies in producing political outcomes. Political production — finding policies legislators desire and vote-trading to pass them — has strong scale economies up to, but not far beyond, a majority of the voters. Either one or two parties is efficient, but a larger number is not. A single party's optimal long-run strategy is to benefit a dominant majority by avoiding the creation of an effective second party. But short-term rent-seeking is in legislators' and leaders' interests, which eventually causes a second effective party and a stable two-party equilibrium. Estimates of party size for the U.S. Congress suggest considerable short-term rent-seeking. Copyright Martinus Nijhoff Publishers 1987

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  • Kenneth Koford, 1987. "Scale economies and rent-seeking in legislative parties," Public Choice, Springer, vol. 52(1), pages 35-55, January.
    • Handle: RePEc:kap:pubcho:v:52:y:1987:i:1:p:35-55
    DOI: 10.1007/BF00116942
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    References listed on IDEAS

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    1. Riker, William H. & Niemi, Donald, 1962. "The Stability of Coalitions on Roll Calls in the House of Representatives," American Political Science Review, Cambridge University Press, vol. 56(1), pages 58-65, March.
    2. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
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