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Electoral Competition with Rationally Inattentive Voters

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  • Filip Matějka
  • Guido Tabellini

Abstract

This paper studies how voters’ selective ignorance interacts with policy design by political candidates. It shows that the selectivity empowers voters with extreme preferences and small groups, that divisive issues attract most attention, and that public goods are underfunded. Finer granularity of information increases these inefficiencies. Rational inattention can also explain why competing opportunistic candidates do not always converge on the same policy issues.

Suggested Citation

  • Filip Matějka & Guido Tabellini, 2021. "Electoral Competition with Rationally Inattentive Voters," Journal of the European Economic Association, European Economic Association, vol. 19(3), pages 1899-1935.
  • Handle: RePEc:oup:jeurec:v:19:y:2021:i:3:p:1899-1935.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvaa042
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    JEL classification:

    • H00 - Public Economics - - General - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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