KEPPO, JUSSI; SMITH, LONES; DAVYDOV, DMITRY - In: Review of Economic Studies 75 (2008) 2, pp. 597-628
The timing of elections is flexible in many countries. We study this optimization by first creating a Bayesian learning model of a mean-reverting political support process. We then explore optimal electoral timing, modelling it as a renewable American option with interacting waiting and stopping...