Ethnic party competition beyond the segmented market

Abstract

The outbidding model of ethnic politics focuses on party competition in an ethnically perfectly segmented electoral market where no party appeals to voters across the ethnic divide. The power sharing model retains this assumption, yet tries to prevent outbidding through moderation-inducing institutional design. Empirically, imperfectly segmented electoral markets and variance of ethnic party strategies beyond radical outbidding have been observed. To provide a stepping stone towards a more complete theory of ethnic party competition, this article introduces the notion of nested competition, defined as party competition in an imperfectly segmented market where some – but not all – parties make offers across ethnic divides and where competition in intra-ethnic arenas is nested within an inter-ethnic arena of party competition. The notion of nested competition helps explain why ethnic outbidding is not omnipresent in contemporary multi-ethnic democracies. A moderate position on the ethnic dimension that appears inauspicious from the perspective of intra-ethnic competition can turn into the strategically superior choice once ethnic parties take the whole system of competitive interactions within intra- and inter-ethnic arenas into account. A case study of nested competition for Hungarian votes in the Vojvodina region of Northern Serbia illustrates the conceptual innovations.