Binswanger, Johannes; Prüfer, Jens - In: European Journal of Political Economy 28 (2012) 3, pp. 358-372
manipulate his reelection chances. We find that this limited strategic sophistication affects policy choice in a fundamental way …. Under perfect sophistication, a politician does not make any use of his private information but completely panders to voters …' opinions. In contrast, under limited sophistication, a politician makes some use of private information and panders only …