Millner, Antony; Ollivier, Helene; Simon, Leo - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2014
We consider a two period model in which an incumbent political party chooses the level of a current policy variable unilaterally, but faces competition from a political opponent in the future. Both parties care about voters' payoffs, but they have different beliefs about how policy choices will...