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Hiding Information in Electoral Competition

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Author Info
Paul Heidhues
Johan Lagerlöf

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Abstract

We model a two-candidate electoral competition in which there is uncertainty about a policy-relevant state of the world. The candidates receive private signals about the true state, which are imperfectly correlated. We study whether the candidates are able to credibly communicate their information to voters through their choice of policy platforms. Our results show that the fact that private information is dispersed between the candidates creates a strong incentive for them to bias their messages toward the electorate's prior. Information transmission becomes more difficult, the more the information is dispersed between the candidates and the stronger is the electorate's prior. Indeed, as more prior information becomes available, welfare can decrease.

ZUSAMMENFASSUNG - (Verheimlichen von Informationen im Wahlkampf)
In diesem Beitrag wird ein Wahlkampf zwischen zwei Politikern modelliert, in welchem Unsicherheit über die bessere von zwei Politikalternativen herrscht. Die Kandidaten erhalten private und unvollständig korrelierte Signale darüber, welche Politik für die Wähler besser ist. Der Beitrag untersucht, ob die Kandidaten diese Informationen durch die Auswahl ihrer Wahlkampfplattform glaubwürdig an die Wähler weitergeben können. Die Tatsache, dass die Kandidaten nicht genau dieselben Information haben, führt dazu, dass sie ihre Informationen teilweise oder völlig ignorieren und ihre Wahlkampfplattform in Richtung der a priori Informationen der Wähler ausrichten. Die Weitergabe der Informationen der Politiker wird umso schwieriger desto mehr die Informationen zwischen den Kandidaten verteilt sind und desto besser die Wähler informiert sind. Im Gleichgewicht kann dies sogar dazu führen, dass bessere a priori Informationen der Wähler die Wohlfahrt senken.

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Publisher Info
Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number FS IV 00-06.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 40 pages
Date of creation: May 2000
Date of revision: Feb 2002
Publication status: Published in Games and Economic Behavior, Vol. 42(1), 2003, pp. 48-74.
Handle: RePEc:wzb:wzebiv:fsiv00-06

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Related research
Keywords: Electoral competition; Information transmission; Cheap talk; Opportunism; Public opinion; Correlation;

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Martin J. Osborne, 1995. "Spatial Models of Political Competition under Plurality Rule: A Survey of Some Explanations of the Number of Candidates and the Positions They Take," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 261-301, May. [Downloadable!] (restricted)
  2. Schultz, Christian, 1995. " The Politics of Persuasion When Voters Are Rational," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(3), pages 357-68, September.
    Other versions:
  3. Tim Besley & Rohini Pande, 1998. "Read my lips: the political economy of information transmission," IFS Working Papers W98/13, Institute for Fiscal Studies.
    Other versions:
  4. Stephen Morris, 1999. "Political Correctness," Cowles Foundation Discussion Papers 1242, Cowles Foundation, Yale University. [Downloadable!]
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  5. : Christian Schultz, . "Polarization and Inefficient Policies," Discussion Papers 93-16, University of Copenhagen. Department of Economics.
    Other versions:
  6. Ottaviani, Marco & Sorensen, Peter, 2001. "Information aggregation in debate: who should speak first?," Journal of Public Economics, Elsevier, vol. 81(3), pages 393-421, September. [Downloadable!] (restricted)
  7. Kenneth Rogoff, 1990. "Equilibrium Political Budget Cycles," NBER Working Papers 2428, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Harrington, Joseph E, Jr, 1993. "Economic Policy, Economic Performance, and Elections," American Economic Review, American Economic Association, vol. 83(1), pages 27-42, March.
  9. Marco Ottaviani & Peter Sorensen, 1999. "Professional Advice," Game Theory and Information 9906003, EconWPA. [Downloadable!]
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  10. Prendergast, Canice, 1993. "A Theory of "Yes Men."," American Economic Review, American Economic Association, vol. 83(4), pages 757-70, September. [Downloadable!] (restricted)
  11. Krishna, V. & Morgan, J., 1999. "A Model of Expertise," Papers 206, Princeton, Woodrow Wilson School - Public and International Affairs.
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  12. Roemer, J.E., 1992. "The Emergence of Party Ideology when Voter Are Uncertain about How the Economy Works," Papers 396, California Davis - Institute of Governmental Affairs.
  13. Schultz, Christian, 1999. "Monetary Policy, Delegation and Polarisation," Economic Journal, Royal Economic Society, vol. 109(455), pages 164-78, April. [Downloadable!] (restricted)
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  14. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-51, November. [Downloadable!] (restricted)
  15. Cukierman, Alex & Tommasi, Mariano, 1998. "When Does It Take a Nixon to Go to China?," American Economic Review, American Economic Association, vol. 88(1), pages 180-97, March. [Downloadable!] (restricted)
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  16. Wilko Letterie & Otto H. Swank, 1998. "Economic Policy, Model Uncertainty and Elections," Economics and Politics, Blackwell Publishing, vol. 10(1), pages 85-103, 03. [Downloadable!] (restricted)
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  17. Marco Battaglini, 2000. "Multiple Referrals and Multidimensional Cheap Talk," Econometric Society World Congress 2000 Contributed Papers 1557, Econometric Society. [Downloadable!]
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  18. Wittman, Donald, 1989. "Why Democracies Produce Efficient Results," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1395-1424, December. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Aleksander Berentsen & Esther Bruegger & Simon Loertscher, 2008. "Learning, public good provision, and the information trap," IEW - Working Papers iewwp371, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  2. Frisell, Lars, 2004. "Populism," Working Paper Series 166, Sveriges Riksbank (Central Bank of Sweden). [Downloadable!]
  3. Marco Ottaviani & Peter Norman Sorensen, 2002. "Professional Advice: The Theory of Reputational Cheap Talk," Discussion Papers 02-05, University of Copenhagen. Department of Economics. [Downloadable!]
  4. Jason G. Cummins & Ingmar Nyman, 2002. "The Dark Side of Competitive Pressure," Hunter College Department of Economics Working Papers 02/3, Hunter College: Department of Economics, revised 2002. [Downloadable!]
    Other versions:
  5. Lagerlöf, Johan N.M., 2003. "Are we Better Off if our Politicians Have More Information?," CEPR Discussion Papers 3884, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Santiago Sanchez-Pages & Marc Vorsatz, 2004. "An Experimental Study of Truth-Telling in a Sender-Receiver Game," ESE Discussion Papers 128, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
    Other versions:
  7. Matthew Gentzkow & Jesse Shapiro, 2005. "Media Bias and Reputation," NBER Working Papers 11664, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Ingmar Nyman & Jason G. Cummins, 2007. "“Yes-Men in Tournaments," Hunter College Department of Economics Working Papers 417, Hunter College: Department of Economics. [Downloadable!]
  9. Ingmar Nyman & Jason G. Cummins, 2005. "Information Management in Rank-Order Tournaments," Hunter College Department of Economics Working Papers 413, Hunter College: Department of Economics. [Downloadable!]
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