The direction of health care reform in Congress is in the hands of the Gang of Six senators on the Senate Finance Committee.  Two of the Republican members, Grassley and Enzi, seem to be in the gang because they are friends on the Head of the Committee, Democrat Max Baucus, and not because they are centrists.  The conventional wisdom is that these two are not going to sign on to anything that might be a win for Obama because the Republican caucus is breathing down their necks just in case they have any inclination to let centrism trump party.  This leaves Olympia Snowe as the only Republican in the gang who might be pliable.

An interesting article by Ezra Klein in the Washington Post offers a paradox.  According to the article, Snowe is on the left of two of the Democrats in the Gang of Six.  The Democrats need sixty votes to avoid a filibuster.  This implies in a first order analysis that the pivotal vote is not Snowe but a more conservative Democrat like Kent Conrad.  This would imply a conservative leaning bill.

But now it gets interesting and I am going to offer my own simple analysis which differs slightly from Klein’s.

Conservative Democrats do not have to prove/signal how conservative they are if a Republican votes for health care reform.  So, actually Snowe is the pivotal voter and if she votes for reform, her preferences will determine the shape of the final program as Conrad can safely vote for something a bit more leftwing.

Suppose she decides not to vote for reform as she is also under pressure from the Republican caucus.  Then the conservative Democrats do have to signal they are not liberals by moving to the right.  This implies the pivotal (Democratic) voter has shifted to the right if a Republican fails to join the coalition voting for reform.  A Republican’s departure leads to a more right-wing bill. This is the paradox.

Snowe can do her own analysis and realize what her vote means for healthcare reform – a more right-wing bill not a more left-wing bill.

More broadly, signaling to constituents matters (for re-election) to policymakers as well as their own preferences.  The two forces together can lead to subtle policy choices by the winning coalition.  Not sure if there is some formal poli sci work on this or not.