Politicians can destroy their whole reputation with one mistake. E. Second , political races are at least as competitive as markets. Incumbent politicians know this, so they strive to preemptively adjust policy to please the electorate. They are the best. That is why they won in the first place and why they are likely to win again.
Campaign contributions are just another sign of a serious candidate.
Voters would vote against candidates because they had so much money behind them. The case of Perot shows that it is easy for a third-party candidate with serious mass support to enter at the highest level. Elections, unlike markets, are zero-sum games. Don't forget Tiebout-type competition. F. Third , empirical evidence shows a strong link between voter preferences and legislative behavior.