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This paper studies the effect of a politician’s ideological strength on campaign contributions that the politician receives from interest groups. If interest groups care mainly about current, or short-run, policy outcomes, they will make campaign contributions to ideologically neutral politicians who are often pivotal voters in the legislature. However, if interest groups care more about future, or...
We study the interdependence between campaign contributions, the candidates’ positions, and electoral outcomes. In our model, a candidate who moves away from his firmly established position towards a more risky one generates costs for the voters. Campaign contributions allow the candidates to reduce these mobility costs. We show that if donations were prohibited, then a unique equilibrium regarding...
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