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Persistent link: https://www.econbiz.de/10009357185
We study identification of preferences in static single-agent discrete choice models where decision makers may be imperfectly informed about the state of the world. We leverage the notion of one-player Bayes Correlated Equilibrium by Bergemann and Morris (2016) to provide a tractable...
Persistent link: https://www.econbiz.de/10014309143
The paper investigates strategic campaigning in a model of redistributive politics in a society with many groups and two parties. Campaigns are informative, and parties can target campaigns to different groups. Voters are uncertain about whether parties fabor special groups. The parties will...
Persistent link: https://www.econbiz.de/10011514172
When politicians have lower discount factors than voters, democratic elections cannot sufficiently motivate politicians to undertake long-term socially beneficial projects. When politicians can offer incentive contracts which become effective upon reelection, the hierarchy of contracts and...
Persistent link: https://www.econbiz.de/10011397764
When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social welfare can be improved by threshold contracts. A threshold incentive contract stipulates a performance level which a politican must reach in order to have the right to stand for...
Persistent link: https://www.econbiz.de/10011408440
Persistent link: https://www.econbiz.de/10001733386
Persistent link: https://www.econbiz.de/10002403179
When politicians have lower discount factors than voters, democratic elections cannot sufficiently motivate politicians to undertake long-term socially beneficial projects. When politicians can offer incentive contracts which become effective upon reelection, the hierarchy of contracts and...
Persistent link: https://www.econbiz.de/10014460948
When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social welfare can be improved by threshold contracts. A threshold incentive contract stipulates a performance level which a politican must reach in order to have the right to stand for...
Persistent link: https://www.econbiz.de/10013361017
We study a game theoretic model of a parliamentary democracy under proportional representation where `citizen candidates' form parties, voting occurs and governments are formed. We study the coalition governments that emerge as functions of the parties' seat shares, the size of the rents from...
Persistent link: https://www.econbiz.de/10011603414