Policy formation in a two party system
Student name: Ms Urvashi Sirohi
Guide: Mr Soumendu Sarkar
Year of completion: 2013
Host Organisation: TERI University
Abstract: We study the influence of different conflicting interests on policy making- that of the voters and the lobbyist.
The party which has established a position for itself in the eyes of the voters manages to deviate from its
voter friendly stand without losing power. In doing so, it takes this trust factor as its safeguard for its
favoring of the lobbyist. In this context, we examine the range in which such parties can deviate from the
median voter position and the rule that the lobbyist follows in switching between the two parties. We show
that each party deviates only till a certain point after which it loses the trust and the other party comes to
power. The party that wins the election is financed by the lobbyist.
