In most states with market oriented economic systems privatisation plays an important role in the political discussion, mainly due to the fundamental problem of all economic systems, which is scarcity of available resources. The responsible politicians try to improve the allocation of scarce...

Standard spatial models of political competition give rise to equilibria in which the competing political parties or candidates converge to a common position. In this paper I show how political polarization can be generated in models that focus on the nexus between pre-election interest group...