Bundling (public choice)
Encyclopedia
Bundling is a political science
concept involving selection of candidates for public office, and is often studied in public choice theory
. Occurring principally in republic
s, the electorate, rather than directly voting on each individual piece of proposed legislation, must choose a number of candidates (or parties) for the legislature. In so doing, they accept or reject each individual candidate or party and their "bundle" of positions on various issues. As there may be no candidate who perfectly reflects the views an individual voter on all the issues of importance to him/her, each voter must prioritize what issues are most important and choose a candidate accordingly. Another form of bundling occurs in races where the candidate has a running mate
who is elected on the same ticket, as in U.S. presidential elections.
Bundling, as studied in public choice theory
is essentially a variant of product bundling
: each candidate and party is marketed as a product comprising a bundle of positions and attributes. In party-list proportional representation
(particularly closed list
variants), bundling may be especially pronounced, as voters select an entire slate of party candidates rather than choosing individual candidates, thus lacking the option of selecting one candidate of a party and not another. Robert Cooter's The Strategic Constitution notes that when voters' demand for a party is inelastic, the party will tend to nominate candidates based more on loyalty than on popularity: "Thus, monopoly power of a party decreases the demand of its leaders for loyalty."
Bundling in political economy is not to be confused with bundling of donations in campaign finance. It has been argued that bundling can often reduce the cost of political transactions. But it has also been argued that the bundling of policy packages necessitated by indivisibility weakens the signals provided even by well-informed voters.
, in which each shareholder can appoint a specific individual to represent him (this appointment being unaffected by who anyone selects as their proxy). Theoretically, a direct democracy
would eliminate this problem, as there would be no need to accept a candidate and their bundle of positions. Nonetheless, members of a coalition might find the need to make compromises with other members in order to maintain their cohesive group and stay in power. In countries that use proportional representation
, a single transferable vote
can also allow voters to debundle candidates from their parties.
In a voluntary community
, market forces provide an alternate set of safeguards, as different communities compete to provide bundles of services at quality levels and prices that consumers will buy. Such forces already influence property values in communities that have governments, but there is typically a disconnect between governmental authorities' incentives (such as salary) and the property values and other economic indicators of a community's attractiveness to buyers.
Political science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...
concept involving selection of candidates for public office, and is often studied in public choice theory
Public choice theory
In economics, public choice theory is the use of modern economic tools to study problems that traditionally are in the province of political science...
. Occurring principally in republic
Republic
A republic is a form of government in which the people, or some significant portion of them, have supreme control over the government and where offices of state are elected or chosen by elected people. In modern times, a common simplified definition of a republic is a government where the head of...
s, the electorate, rather than directly voting on each individual piece of proposed legislation, must choose a number of candidates (or parties) for the legislature. In so doing, they accept or reject each individual candidate or party and their "bundle" of positions on various issues. As there may be no candidate who perfectly reflects the views an individual voter on all the issues of importance to him/her, each voter must prioritize what issues are most important and choose a candidate accordingly. Another form of bundling occurs in races where the candidate has a running mate
Running mate
A running mate is a person running together with another person on a joint ticket during an election. The term is most often used in reference to the person in the subordinate position but can also properly be used when referring to both candidates, such as "Michael Dukakis and Lloyd Bentsen were...
who is elected on the same ticket, as in U.S. presidential elections.
Bundling, as studied in public choice theory
Public choice theory
In economics, public choice theory is the use of modern economic tools to study problems that traditionally are in the province of political science...
is essentially a variant of product bundling
Product bundling
Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business , in the cable television industry Product bundling is a marketing strategy that involves offering several products for sale as...
: each candidate and party is marketed as a product comprising a bundle of positions and attributes. In party-list proportional representation
Party-list proportional representation
Party-list proportional representation systems are a family of voting systems emphasizing proportional representation in elections in which multiple candidates are elected...
(particularly closed list
Closed list
Closed list describes the variant of party-list proportional representation where voters can only vote for political parties as a whole and thus have no influence on the party-supplied order in which party candidates are elected...
variants), bundling may be especially pronounced, as voters select an entire slate of party candidates rather than choosing individual candidates, thus lacking the option of selecting one candidate of a party and not another. Robert Cooter's The Strategic Constitution notes that when voters' demand for a party is inelastic, the party will tend to nominate candidates based more on loyalty than on popularity: "Thus, monopoly power of a party decreases the demand of its leaders for loyalty."
Bundling in political economy is not to be confused with bundling of donations in campaign finance. It has been argued that bundling can often reduce the cost of political transactions. But it has also been argued that the bundling of policy packages necessitated by indivisibility weakens the signals provided even by well-informed voters.
Methods of counteracting
In the corporate world, this problem is dealt with through proxy votingProxy voting
Proxy voting has two forms: delegable voting and delegated voting, which are procedures for the delegation to another member of a voting body of that member's power to vote in his absence, and/or for the selection of additional representatives, as in the case with transitive proxies...
, in which each shareholder can appoint a specific individual to represent him (this appointment being unaffected by who anyone selects as their proxy). Theoretically, a direct democracy
Direct democracy
Direct democracy is a form of government in which people vote on policy initiatives directly, as opposed to a representative democracy in which people vote for representatives who then vote on policy initiatives. Direct democracy is classically termed "pure democracy"...
would eliminate this problem, as there would be no need to accept a candidate and their bundle of positions. Nonetheless, members of a coalition might find the need to make compromises with other members in order to maintain their cohesive group and stay in power. In countries that use proportional representation
Proportional representation
Proportional representation is a concept in voting systems used to elect an assembly or council. PR means that the number of seats won by a party or group of candidates is proportionate to the number of votes received. For example, under a PR voting system if 30% of voters support a particular...
, a single transferable vote
Single transferable vote
The single transferable vote is a voting system designed to achieve proportional representation through preferential voting. Under STV, an elector's vote is initially allocated to his or her most preferred candidate, and then, after candidates have been either elected or eliminated, any surplus or...
can also allow voters to debundle candidates from their parties.
In a voluntary community
Voluntary community
A voluntary society, voluntary community or voluntary city is one in which all property and all services are provided through voluntary means, such as private or cooperative ownership...
, market forces provide an alternate set of safeguards, as different communities compete to provide bundles of services at quality levels and prices that consumers will buy. Such forces already influence property values in communities that have governments, but there is typically a disconnect between governmental authorities' incentives (such as salary) and the property values and other economic indicators of a community's attractiveness to buyers.
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