Failures of government policies often provoke opposite reactions from citizens; some call for a reversal of the policy while others favor its continuation in stronger form. We offer an explanation of such polarization, based on a natural bimodality of preferences in political and economic contexts, and consistent with Bayesian rationality.
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Length: 17 pages Date of creation: 22 Aug 2006 Date of revision:
12 Apr 2007 Handle: RePEc:hhs:hastef:0655
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