A nash equilibrium model of campaign spending

Conclusion This paper has presented a Nash equilibrium model of campaign spending. The equilibrium is always stable and it possesses sensible comparative static properties. Spending in equilibrium depends on the scale parameter of the vote-share production function and on the intensities of preference for marginal vote share by the two candidates. Thus, campaigns which turn into spending wars are characterized by large values of both candidates' intensities of preference for vote share.