How do voters allocate costly attention to alternative political issues? And how does selective ignorance of voters interact with policy design by politicians? We address these questions by developing a model of electoral competition with rationally inattentive voters. Rational inattention...

Kooperation stellt einen wichtigen Faktor beim Erreichen ökonomischer Ziele dar. Dient Kooperation den eigenen Interessen, lässt dies eine relativ triviale Erklärung kooperativer Handlungsweisen anhand von Eigennutz zu. Gilt dies jedoch nicht, ist eine genauere Analyse kooperativer...

This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society’s marginal valuation...

This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society’s marginal valuation...