IDEAS home Printed from https://ideas.repec.org/p/cer/papers/wp587.html
   My bibliography  Save this paper

A Model of Focusing in Political Choice

Author

Listed:
  • Salvatore Nunnari
  • Jan Zapal

Abstract

This paper develops a theoretical model of voters' and politicians' behavior based on the notion that voters focus disproportionately on, and hence overweight, certain attributes of policies. We assume that policies have two attributes and that voters focus more on the attribute in which their options differ more. First, we consider exogenous policies and show that voters' focusing polarizes the electorate. Second, we consider the endogenous supply of policies by office-motivated politicians who take voters' distorted focus into account. We show that focusing leads to inefficient policies, which cater excessively to a subset of voters: social groups that are larger, have more distorted focus, are more moderate, and are more sensitive to changes in a single attribute are more in uential. Finally, we show that augmenting the classical models of voting and electoral competition with focusing can contribute to explain puzzling stylized facts as the inverse correlation between income inequality and redistribution or the backlash effect of extreme policies.

Suggested Citation

  • Salvatore Nunnari & Jan Zapal, 2017. "A Model of Focusing in Political Choice," CERGE-EI Working Papers wp587, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
  • Handle: RePEc:cer:papers:wp587
    as

    Download full text from publisher

    File URL: http://www.cerge-ei.cz/pdf/wp/Wp587.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ben Lockwood & James Rockey, 0. "Negative Voters? Electoral Competition with Loss-Aversion," Economic Journal, Royal Economic Society, vol. 130(632), pages 2619-2648.
    2. Simonson, Itamar, 1989. "Choice Based on Reasons: The Case of Attraction and Compromise Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 158-174, September.
    3. Alberto Alesina & Francesco Passarelli, 2019. "Loss Aversion in Politics," American Journal of Political Science, John Wiley & Sons, vol. 63(4), pages 936-947, October.
    4. Dhingra, Swati & Ottaviano, Gianmarco I. P. & Sampson, Thomas & Reenen, John Van, 2016. "The consequences of Brexit for UK trade and living standards," LSE Research Online Documents on Economics 66144, London School of Economics and Political Science, LSE Library.
    5. Thomas Piketty & Emmanuel Saez & Stefanie Stantcheva, 2014. "Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities," American Economic Journal: Economic Policy, American Economic Association, vol. 6(1), pages 230-271, February.
    6. Glaeser, Edward L. & Ponzetto, Giacomo A.M., 2014. "Shrouded costs of government: The political economy of state and local public pensions," Journal of Public Economics, Elsevier, vol. 116(C), pages 89-105.
    7. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
    8. Ben Lockwood & James Rockey, 2020. "Negative Voters? Electoral Competition with Loss-Aversion," The Economic Journal, Royal Economic Society, vol. 130(632), pages 2619-2648.
    9. Timothy B. Heath & Subimal Chatterjee, 1995. "Asymmetric Decoy Effects on Lower-Quality Versus Higher-Quality Brands: Meta-Analytic and Experimental Evidence," Post-Print hal-00670480, HAL.
    10. Giacomo A. M. Ponzetto & Maria Petrova & Ruben Enikolopov, 2008. "The Dracula effect: voter information and trade policy," Economics Working Papers 1296, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2020.
    11. Roth, Alvin E & Murnighan, J Keith & Schoumaker, Francoise, 1988. "The Deadline Effect in Bargaining: Some Experimental Evidence," American Economic Review, American Economic Association, vol. 78(4), pages 806-823, September.
    12. Vivekinan Ashok & Ilyana Kuziemko & Ebonya Washington, 2015. "Support for Redistribution in an Age of Rising Inequality: New Stylized Facts and Some Tentative Explanations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 367-433.
    13. Heath, Timothy B & Chatterjee, Subimal, 1995. "Asymmetric Decoy Effects on Lower-Quality versus Higher-Quality Brands: Meta-analytic and Experimental Evidence," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(3), pages 268-284, December.
    14. Fabio Galeotti & Maria Montero & Anders Poulsen, 2019. "Efficiency Versus Equality in Bargaining," Journal of the European Economic Association, European Economic Association, vol. 17(6), pages 1941-1970.
    15. Francesco Passarelli & Guido Tabellini, 2017. "Emotions and Political Unrest," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 903-946.
    16. Gilat Levy & Ronny Razin, 2015. "Correlation Neglect, Voting Behavior, and Information Aggregation," American Economic Review, American Economic Association, vol. 105(4), pages 1634-1645, April.
    17. Rainald Borck, 2007. "Voting, Inequality And Redistribution," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 90-109, February.
    18. Alberto Bisin & Alessandro Lizzeri & Leeat Yariv, 2015. "Government Policy with Time Inconsistent Voters," American Economic Review, American Economic Association, vol. 105(6), pages 1711-1737, June.
    19. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
    20. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience Theory of Choice Under Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1243-1285.
    21. Lockwood, Ben, 2017. "Confirmation Bias and Electoral Accountability," Quarterly Journal of Political Science, now publishers, vol. 11(4), pages 471-501, February.
    22. Vivekinan Ashok & Ilyana Kuziemko & Ebonya Washington, 2015. "Support for Redistribution in an Age of Rising Inequality: New Stylized Facts and Some Tentative Explanations," NBER Working Papers 21529, National Bureau of Economic Research, Inc.
    23. Alessandro Gavazza & Alessandro Lizzeri, 2009. "Transparency and Economic Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1023-1048.
    24. Huber, Joel & Payne, John W & Puto, Christopher, 1982. "Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(1), pages 90-98, June.
    25. Thomas Romer & Howard Rosenthal, 1978. "Political resource allocation, controlled agendas, and the status quo," Public Choice, Springer, vol. 33(4), pages 27-43, December.
    26. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    27. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    28. Rubinstein, Ariel, 1988. "Similarity and decision-making under risk (is there a utility theory resolution to the Allais paradox?)," Journal of Economic Theory, Elsevier, vol. 46(1), pages 145-153, October.
    29. Gul, Faruk & Pesendorfer, Wolfgang, 2009. "Partisan politics and election failure with ignorant voters," Journal of Economic Theory, Elsevier, vol. 144(1), pages 146-174, January.
    30. Pietro Ortoleva & Erik Snowberg, 2015. "Overconfidence in Political Behavior," American Economic Review, American Economic Association, vol. 105(2), pages 504-535, February.
    31. Giacomo A. M. Ponzetto, 2011. "Heterogeneous Information and Trade Policy," 2011 Meeting Papers 189, Society for Economic Dynamics.
    32. Leland, Jonathan W, 1994. "Generalized Similarity Judgments: An Alternative Explanation for Choice Anomalies," Journal of Risk and Uncertainty, Springer, vol. 9(2), pages 151-172, October.
    33. Vivekinan Ashok & Ilyana Kuziemko & Ebonya Washington, 2015. "Support for Redistribution in an Age of Rising Inequality: New Stylized Facts and Some Tentative Explanations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(1 (Spring), pages 367-433.
    34. Kaisa Herne, 1999. "The Effects of Decoy Gambles on Individual Choice," Experimental Economics, Springer;Economic Science Association, vol. 2(1), pages 31-40, August.
    35. Fabio Galeotti & Maria Montero & Anders Poulsen, 2015. "Efficiency versus equality in real-time bargaining with communication," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 15-18, School of Economics, University of East Anglia, Norwich, UK..
    36. Carlo Prato & Stephane Wolton, 2016. "The Voters' Curses: Why We Need Goldilocks Voters," American Journal of Political Science, John Wiley & Sons, vol. 60(3), pages 726-737, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dertwinkel-Kalt, Markus & Wenzel, Tobias, 2019. "Focusing and framing of risky alternatives," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 289-304.
    2. Prato, Carlo & Wolton, Stephane, 2018. "Rational ignorance, populism, and reform," European Journal of Political Economy, Elsevier, vol. 55(C), pages 119-135.
    3. Leyla D. Karakas & Devashish Mitra, 2021. "Electoral competition in the presence of identity politics," Journal of Theoretical Politics, , vol. 33(2), pages 169-197, April.
    4. Balart, Pau & Casas, Agustin & Troumpounis, Orestis, 2022. "Technological change, campaign spending and polarization," Journal of Public Economics, Elsevier, vol. 211(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jörg Rieskamp & Jerome R. Busemeyer & Barbara A. Mellers, 2006. "Extending the Bounds of Rationality: Evidence and Theories of Preferential Choice," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 631-661, September.
    2. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2013. "Salience and Consumer Choice," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 803-843.
    3. Ben Lockwood & James Rockey, 2020. "Negative Voters? Electoral Competition with Loss-Aversion," The Economic Journal, Royal Economic Society, vol. 130(632), pages 2619-2648.
    4. Yuki, Kazuhiro, 2023. "Social Identity, Redistribution, and Development," MPRA Paper 115965, University Library of Munich, Germany.
    5. Glaeser, Edward L. & Ponzetto, Giacomo A.M., 2018. "The political economy of transportation investment," Economics of Transportation, Elsevier, vol. 13(C), pages 4-26.
    6. Castillo, Geoffrey, 2020. "The attraction effect and its explanations," Games and Economic Behavior, Elsevier, vol. 119(C), pages 123-147.
    7. Windsteiger, Lisa, 2022. "The redistributive consequences of segregation and misperceptions," European Economic Review, Elsevier, vol. 144(C).
    8. Ingvild Almås & Alexander W. Cappelen & Bertil Tungodden, 2020. "Cutthroat Capitalism versus Cuddly Socialism: Are Americans More Meritocratic and Efficiency-Seeking than Scandinavians?," Journal of Political Economy, University of Chicago Press, vol. 128(5), pages 1753-1788.
    9. Carlos Viana de Carvalho & Eduardo Zilberman & Ruy Ribeiro, "undated". "Sentiment, Electoral Uncertainty and Stock Returns," Textos para discussão 655, Department of Economics PUC-Rio (Brazil).
    10. Quan Zheng & Xiajun Amy Pan & Janice E. Carrillo, 2019. "Probabilistic Selling for Vertically Differentiated Products with Salient Thinkers," Marketing Science, INFORMS, vol. 38(3), pages 442-460, May.
    11. Nana Adrian, 2019. "Price Discrimination and Salient Thinking," Diskussionsschriften dp1906, Universitaet Bern, Departement Volkswirtschaft.
    12. Marcel Lichters & Marko Sarstedt & Bodo Vogt, 2015. "On the practical relevance of the attraction effect: A cautionary note and guidelines for context effect experiments," AMS Review, Springer;Academy of Marketing Science, vol. 5(1), pages 1-19, June.
    13. Prummer, Anja, 2020. "Micro-targeting and polarization," Journal of Public Economics, Elsevier, vol. 188(C).
    14. Wilfred Amaldoss & James R. Bettman & John W. Payne, 2008. "—Biased but Efficient: An Investigation of Coordination Facilitated by Asymmetric Dominance," Marketing Science, INFORMS, vol. 27(5), pages 903-921, 09-10.
    15. Lisa Windsteiger, 2018. "Monopolistic Supply of Sorting, Inequality and Welfare," Working Papers tax-mpg-rps-2018-15, Max Planck Institute for Tax Law and Public Finance.
    16. Sürücü, Oktay & Djawadi, Behnud Mir & Recker, Sonja, 2019. "The asymmetric dominance effect: Reexamination and extension in risky choice – An experimental study," Journal of Economic Psychology, Elsevier, vol. 73(C), pages 102-122.
    17. Marcel Lichters & Marko Sarstedt & Bodo Vogt, 2015. "On the practical relevance of the attraction effect: A cautionary note and guidelines for context effect experiments," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(1), pages 1-19, June.
    18. Lisa Windsteiger, 2018. "Sorting in the Presence of Misperceptions," Working Papers tax-mpg-rps-2018-08, Max Planck Institute for Tax Law and Public Finance.
    19. Sürücü, Oktay & Brangewitz, Sonja & Mir Djawadi, Behnud, 2017. "Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries," Center for Mathematical Economics Working Papers 574, Center for Mathematical Economics, Bielefeld University.

    More about this item

    Keywords

    focus; attention; salience; political polarization; probabilistic voting model; electoral competition; behavioral political economy; income inequality; redistribution;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp587. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucie Vasiljevova (email available below). General contact details of provider: https://edirc.repec.org/data/eiacacz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.