Electoral competition is here specified as revolving around both candidate policy positions and non-policy issues.Two candidates spend their resources on non-policy issues to sway citizens' ideological voting decisions but they are constrained by their party activists who provide them with electoral resources. In this setting, a candidate with a resource advantage converges more towards the centre, but a candidate with a resource disadvantage diverges more from the centre. This asymmetry in two candidates' incentives to converge generates the result that the two candidates do not converge towards each other. To test these theoretical results, two-stage estimation is used in this article to solve the reciprocal relationship between policy moderation and campaign resources. This analysis produces strong empirical support for the model in the context of US Senate elections between 1974 and 2000.
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