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Competing for Endorsements

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  • Gene M. Grossman
  • Elhanan Helpman

Abstract

Endorsements are a simple language for communication between well-informed interest-group leaders and less-informed interest-group members. The members, who share some policy concerns, may not fully understand where their interests lie on certain issues. If their leaders cannot fully explain the issues, they can convey some information by endorsing one political party or the other. Members must interpret the importance of the endorsement in view of their feelings about the parties on other unrelated matters. When interest groups endorse legislative contenders, the latter may compete for their backing. Policy outcomes may favour special interests at the expense of the general public. We examine the conditions under which parties compete for endorsements, the extent to which policy outcomes are skewed, and the efficiency properties of the resulting political equilibria. We consider both leaders who follow a mechanical endorsement rule and leaders who behave strategically.

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Bibliographic Info

Paper provided by Harvard - Institute of Economic Research in its series Harvard Institute of Economic Research Working Papers with number 1784.

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Date of creation: 1996
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Handle: RePEc:fth:harver:1784

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  1. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
  2. McKelvey, Richard D. & Ordeshook, Peter C., 1985. "Elections with limited information: A fulfilled expectations model using contemporaneous poll and endorsement data as information sources," Journal of Economic Theory, Elsevier, vol. 36(1), pages 55-85, June.
  3. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-51, November.
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