Abstract:It might sound perfectly obvious that in a real democracy, the majority’s interests will always win against the interests of the minority. Unfortunately, in reality, this is not the case. Small interest groups can determine the outcome of elections and enact policies that favor their own interests, rather than those of the majority. This paper identifies how, contrary to the median-voter’s model, small interest groups can win, if information asymmetries exist. Additionally, if gains and losses asymmetries ar… Show more
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