In this paper we show that in a simple spatial model where the government is chosen under strict proportional rule, if the outcome function is a linear combination of parties' positions, with coefficients equal to their share of seats, only a two-party voting equilibrium basically exists. The...

Using the spatial theory of voting, this paper describes an institutional structure where there are two branches of the government: the executive, elected by plurality rule, and the legislative elected by proportional rule. The resulting policy outcome is described through a compromise between...

Purely non-cooperative principles, as iterated dominance and backward induction, explain divided government.