Campaign expenditures are not effective in increasing candidates vote shares if voters do not respond to the advertisement when they believe that campaign expenditures are financed with tainted money. In this situation, limiting contributions may reduce the number of policy favors that...

We analyze the incentives created by debt financing in political campaigns. Debt is a significant source of funding for political campaigns, with almost half of all campaigns relying on some form of debt. Moreover, indebted politicians raise more funds in subsequent elections, especially from...

This paper characterizes the optimal advertising strategy of candidates in an election campaign, where groups of heterogeneous voters are targeted through media outlets. We discuss its effects on the implemented policy and relate it to the well-documented increase in polarization. Additionally,...

Negative advertising is frequent in electoral campaigns, despite its ambiguous effectiveness: negativity may reduce voters' evaluation of the targeted politician but have a backlash effect for the attacker. We study the effect of negative advertising in electoral races with more than two...

We study the informational effectiveness of electoral campaigns. Voters may not think about all political issues and have incomplete information with regard to political positions of candidates. Nevertheless, we show that if candidates are allowed to microtarget voters with messages then...

We present a model of elections in which interest group donations allow candidates to shift policy positions. We show that if donations were prohibited, then a unique equilibrium regarding the platform choices of candidates would exist. Our game with financing of political campaigns exhibits two...

The paper considers public funding of political parties when some voters are poorly informed about parties' candidates and campaigns are informative. For symmetric equilibria, it is shown that more public funding leads parties to chose more moderate candidates, and that an increase in the...

This paper experimentally investigates the effect of limits on campaign spending and outcome in an electoral contest where two candidates, an incumbent and a challenger, compete for office in terms of the amount of campaign expenditure. The candidates are asymmetric only in that the incumbent...

This paper studies the effects on electoral competition of political parties relying on monetary donations and volunteer labour for their electioneering activities. It also examines whether a recorded decline in party activism increases special-interest influence on party policy platforms....