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Politically Correct Information Adoption

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Author Info
Holm, Håkan () (Department of Economics, Lund University)
Abstract

This paper analyses the case when the political struggle not is channeled through policy choices, but through what information to adopt. The paper presents a simple model to analyze collective decisions of adopting new information when different parties' payoffs are contingent upon the new information. In equilibrium we demonstrate that the adopted information is biased towards “political correctness” rather than being informative (in the Blackwell sense). These results may be relevant when designing decision mechanisms for institutions that are to be keen on new information.

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File URL: http://swopec.hhs.se/lunewp/papers/lunewp2000_005.pdf
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Publisher Info
Paper provided by Lund University, Department of Economics in its series Working Papers with number 2000:5.

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Length: 23 pages
Date of creation: 28 Jul 2000
Date of revision:
Handle: RePEc:hhs:lunewp:2000_005

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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/
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Related research
Keywords: Informativeness Majority Rule Political Correctness

Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Holm, Hakan J., 1997. "Genetic information and investment in human capital," Journal of Health Economics, Elsevier, vol. 16(4), pages 435-452, August. [Downloadable!] (restricted)
  2. Gilad, Benjamin & Kaish, Stanley & Loeb, Peter D., 1987. "Cognitive dissonance and utility maximization : A general framework," Journal of Economic Behavior & Organization, Elsevier, vol. 8(1), pages 61-73, March. [Downloadable!] (restricted)
  3. Wit, Jorgen, 1998. "Rational Choice and the Condorcet Jury Theorem," Games and Economic Behavior, Elsevier, vol. 22(2), pages 364-376, February. [Downloadable!] (restricted)
  4. Lohmann, Susanne, 1994. "Information Aggregation through Costly Political Action," American Economic Review, American Economic Association, vol. 84(3), pages 518-30, June. [Downloadable!] (restricted)
  5. Kandori, Michihiro, 1992. "The Use of Information in Repeated Games with Imperfect Monitoring," Review of Economic Studies, Blackwell Publishing, vol. 59(3), pages 581-93, July. [Downloadable!] (restricted)
  6. Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-19, June. [Downloadable!] (restricted)
  7. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn. [Downloadable!] (restricted)
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  8. Bassan, Bruno & Scarsini, Marco, 1995. "On the value of information in multi-agent decision theory," Journal of Mathematical Economics, Elsevier, vol. 24(6), pages 557-576. [Downloadable!] (restricted)
  9. Rabin, Matthew, 1994. "Cognitive dissonance and social change," Journal of Economic Behavior & Organization, Elsevier, vol. 23(2), pages 177-194, March. [Downloadable!] (restricted)
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