Dynamic electoral competition with voter loss-aversion and imperfect recall

This paper explores the implications of voter loss-aversion and imperfect recall for the dynamics of electoral competition in a simple Downsian model of repeated elections. The interplay between the median voter’s reference point and political parties’ choice of platforms generates a dynamic process of (de)polarization, following an initial shift in party ideology. This is consistent with the gradual nature of long-term trends in polarization in the US Congress.