So how do we explain this? The Republican strategy was not to only stop bills that are philosophically objectionable to the right but stop every bill possible. That is what we have seen over the last few years as President Obama has repeatedly adopted Republican proposals only have the originator of the proposal oppose the policy once the President signals his approval of it. There are many examples of this; Gov. Romney opposing Romneycare, Sen. McCain opposing cap and trade, a summary of some such proposals, this one, this one, this one, and this one is funny.
How does this behavior square with the median voter theory? Party R initially chose a policy point on the distribution. If party D moves towards R's policy point then party R moves back toward the right side of the distribution. Under the basic MVT this movement by R would necessarily result in them getting a reduced share of the area under the distribution.
Perhaps an augmented version of the MVT would instead assume a two humped distribution and if a party chooses a policy too far from a voter then he loses that voter's votes even if his policy position is more favorable to the voter than is the policy position of the other party. This could potentially mean that the two parties would not converge on the median voter. Something like the drawing below. Party R gets the red area and Party D gets the blue area. In this case Party R moved too close to the center and hence lost the far right side of the distribution - even though those voters should prefer R to D. Hence R's optimal strategy should be to move further right as they would gain more from the right hand side of the distribution than they would lose in the center.
However from the story that does not really appear to be the strategy consideration going on.... Whatever is the case this is certainly not vanilla MVT.
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