A characterization of political yardstick competition
The characterization of yardstick competition elaborated in this chapter and adopted throughout the book starts from a distinctive critical assumption about the agency setting in which it operates. In this electoral agency setting, the principals are the individual members of large heterogeneous electorates or, more generally, large populations of citizens. Individual voters or citizens differ in how they interpret their role and incumbents can treat citizens’ response to their actions as a non-strategic aggregate relation between comparative performance and expected electoral support. The chapter goes on to show that the difficulties associated with this hypothesis are mitigated by the crucial assumption that voter response is not linear but S-shaped—the effects of insignificance, ambiguity, or confusion on the aggregate response tend to dissipate when differences in comparative performance get larger. The possibility is also acknowledged that in real-world settings, depending on circumstances, the mechanism may not work.