How does political uncertainty affect the optimal degree of policy divergence?

Abstract We examine how the optimal degree of policy divergence between two policy platforms in an election is affected by two types of aggregate uncertainty: policy-related and candidate-specific. We show that when the candidate-specific uncertainty is sufficiently large, policy convergence becomes optimal. We also show that when these two types of uncertainty co-exist, only purely office-motivated parties result in policy convergence, in other words, any level of policy motivation of parties results in some policy divergence, making policy motivation undesirable when candidate-specific uncertainty is sufficiently large.