We focus on changes in technology and campaign management to study the documented simultaneous increase in campaign spending and polarization. In our model, some voters are ideological while others are impressionable. If the distribution of voters between types is endogenous and depends on...

The property-rights approach to the theory of the firm is extended by introducing distorted signals of the parties.investments. Investment incentives are then given in two ways, by allocating ownership rights and by tying pay to the signal realization. Optimal incentive strength, that is, the...

In this paper, I compare two different approaches to model implicit contracting, the infinite-horizon approach typically used in the literature and afinite-horizon approach building on an adverse-selection model. I demonstrate that even the most convincing result of the infinite-horizon...