Does Ideological Polarization Lead to Policy Polarization?
Philipp Denter
TL;DR
The paper investigates how ideological polarization shapes policy polarization in a two-party electoral competition where parties are fixed on ideology but free to choose a continuous policy position. It develops a Bayesian Nash equilibrium framework with uncertainty in ideology and valence, showing that policy polarization evolves non-monotonically with ideological polarization $w$, forming a U-shaped relationship with moderation at low $w$ and amplification at high $w$. It further clarifies valence effects, showing that high-valence advantages may lead to more extreme policies in low-polarization contexts but can reverse in highly polarized environments. These results provide a theoretical explanation for empirical patterns where ideological and policy polarizations diverge and have implications for the dynamics of political competition in polarized democracies.
Abstract
I study an election between two ideologically polarized parties that are both office- and policy-motivated. The parties compete by proposing policies on a single issue. The analysis uncovers a non-monotonic relationship between ideological and policy polarization. When ideological polarization is low, an increase leads to policy moderation; when it is high, the opposite occurs, and policies become more extreme. Moreover, incorporating ideological polarization refines our understanding of the role of valence: both high- and low-valence candidates may adopt more extreme positions, depending on the electorate's degree of ideological polarization.
