Challenger entry and electoral accountability

Abstract In this article, I study the effect of endogenous challenger entry on electoral accountability in the presence of adverse selection. To this end, I analyze a two-period electoral agency model wherein a potential challenger freely chooses whether to run for office. The effect of endogenous challenger entry on policy decisions in this model is ambiguous: depending on model parameters, it can worsen or ease policy distortions. Analogously, marginally increasing the cost of running for office can deepen or reduce these distortions. This uncertainty regarding the effect of endogenous challenger entry on policymaking leads to equally ambiguous welfare implications. Nonetheless, I identify conditions under which endogenous challenger entry improves policymaking and voter welfare. This suggests that, in some circumstances, imposing higher barriers to entry in elections can improve policymaking and voter welfare.