2019
DOI: 10.1016/j.euroecorev.2019.07.005
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(Almost) efficient information transmission in elections

Abstract: We study a model in which two parties compete by announcing their policies, after receiving conditionally independent private signals about the true state of the world. Parties are both office-and policy-motivated. Our model can explain radically different policy positions, even when parties receive identical signals and have unbiased preferences. This holds in an asymmetric equilibrium in which both parties reveal their private information to the voters and the implemented policy is (almost) first-best for al… Show more

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