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Signaling Through Political Campaigns: Elections As A Revelation Mechanism

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  • Costas Roumanias
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    Abstract

    Political campaigns are usually seen either as a way of passing information about candidates' intended policies to the voters or as a political liability of the candidates towards the interest groups that finance them. We provide a different interpretation of political campaigns using a political competition model for campaign promises and spending. In a principal-agent framework, elections are shown to be a truth revelation mechanism, in which the principal (voters) induces truthful revelation of ability by the agent (candidates). Campaign promises and spending coexist as an integral part of this mechanism. Political competition is then derived endogenously. Copyright Blackwell Publishing Ltd 2005.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Economics & Politics.

    Volume (Year): 17 (2005)
    Issue (Month): 3 (November)
    Pages: 367-392

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    Handle: RePEc:bla:ecopol:v:17:y:2005:i:3:p:367-392

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    Cited by:
    1. Martin Gregor & Dalibor Roháč, 2009. "The Optimal State Aid Control: No Control," Working Papers IES 2009/14, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Mar 2009.
    2. Costas Roumanias, 2008. "Auctioning Public Office," Discussion Paper Series 2008_08, Department of Economics, University of Macedonia, revised Sep 2008.

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