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Signalling, Incumbency Advantage, and Optimal Reelection Rules

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Author Info

  • Francesco Caselli
  • Tom Cunningham
  • Massimo Morelli
  • Inés Moreno de Barreda

Abstract

Much literature on political behavior treats politicians as motivated by reelection, choosing actions to signal their types to voters. We identify two novel implications of models in which signalling incentives are important. First, because incumbents only care about clearing a reelection hurdle, signals will tend to cluster just above the threshold needed for reelection. This generates a skew distribution of signals leading to an incumbency advantage in the probability of election. Second, voters can exploit the signalling behavior of politicians by precommitting to a higher threshold for signals received. Raising the threshold discourages signalling effort by low quality politicians but encourages effort by high quality politicians, thus increasing the separation of signals and improving the selection function of an election. This precommitment has a simple institutional interpretation as a supermajority rule, requiring that incumbents exceed some fraction of votes greater than 50% to be reelected.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1122.

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Date of creation: Feb 2012
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Handle: RePEc:cep:cepdps:dp1122

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: Supermajority; incumbency advantage; signalling;

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Cited by:
  1. repec:cge:warwcg:160 is not listed on IDEAS
  2. Brollo, Fernanda & Troiano, Ugo, 2013. "What Happens When a Woman Wins an Election? Evidence from Close Races in Brazil," CAGE Online Working Paper Series 161, Competitive Advantage in the Global Economy (CAGE).

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