Political Economy of Federal States

This paper is devoted to policy analysis, formed as a result of electoral competition in federal countries. On the basis of game-theoretic models proposed in the article Kasamatsu (2016), build two of the game describing the interaction of candidates for two cases: 1) when provided equal access for all candidates to federal and regional media; 2) when one candidate to the federal media is limited by censorship. The results suggests that the policy received in terms of equal access, will always exist and have a single value. In contrast, in conditions of censorship, the equilibrium policy will not always exist and can have two meanings. It proves that the equilibrium derived in the case of equal access will always be higher than the optimal values policy for the economy and lower than equilibrium in the conditions of censorship in federal media.