IDEAS home Printed from https://ideas.repec.org/p/kud/kuiedp/1704.html
   My bibliography  Save this paper

Choosing a Public-Spirited Leader. An experimental investigation of political selection

Author

Listed:
  • Thomas Markussen

    (Department of Economics, University of Copenhagen)

  • Jean-Robert Tyran

    (Department of Economics, University of Copenhagen)

Abstract

In this experiment, voters select a leader who can either act in the public interest, i.e. make efficient and equitable policy choices, or act in a corrupt way, i.e. use public funds for private gain. Voters can observe candidates’ pro-social behavior and their score in a cognitive ability test prior to the election, and this fact is known to candidates. Therefore, self-interested candidates have incentives to act in a pro-social manner, i.e. to pretend to be public-spirited leaders. We find that both truly pro-social and egoistic leaders co-exist, but that political selection is ineffective in choosing public-spirited leaders. The main reason is that egoistic candidates strategically pretend to be pro-social to increase their chances of winning the election.

Suggested Citation

  • Thomas Markussen & Jean-Robert Tyran, 2017. "Choosing a Public-Spirited Leader. An experimental investigation of political selection," Discussion Papers 17-04, University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:kuiedp:1704
    as

    Download full text from publisher

    File URL: http://www.econ.ku.dk/english/research/publications/wp/dp_2017/1704.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
    2. Walker, James M, et al, 2000. "Collective Choice in the Commons: Experimental Results on Proposed Allocation Rules and Votes," Economic Journal, Royal Economic Society, vol. 110(460), pages 212-234, January.
    3. Jordi Brandts & David J. Cooper & Roberto A. Weber, 2015. "Legitimacy, Communication, and Leadership in the Turnaround Game," Management Science, INFORMS, vol. 61(11), pages 2627-2645, November.
    4. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    5. Besley, Timothy & Smart, Michael, 2007. "Fiscal restraints and voter welfare," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 755-773, April.
    6. Daniel Diermeier & Michael Keane & Antonio Merlo, 2005. "A Political Economy Model of Congressional Careers," American Economic Review, American Economic Association, vol. 95(1), pages 347-373, March.
    7. Thomas Markussen & Jean-Robert Tyran, 2010. "Serving the Public Interest," NRN working papers 2010-21, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    8. Fernanda Brollo & Tommaso Nannicini & Roberto Perotti & Guido Tabellini, 2013. "The Political Resource Curse," American Economic Review, American Economic Association, vol. 103(5), pages 1759-1796, August.
    9. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February.
    10. Timothy Besley, 2005. "Political Selection," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 43-60, Summer.
    11. Kenju Kamei & Louis Putterman & Jean-Robert Tyran, 2011. "State or Nature? Formal vs. Informal Sanctioning in the Voluntary Provision of Public Goods," Working Papers 2011-3, Brown University, Department of Economics.
    12. Luca Corazzini & Sebastian Kube & Michel André Maréchal & Antonio Nicolò, 2014. "Elections and Deceptions: An Experimental Study on the Behavioral Effects of Democracy," American Journal of Political Science, John Wiley & Sons, vol. 58(3), pages 579-592, July.
    13. Friedel Bolle & Claudia Vogel, 2011. "Power comes with responsibility—or does it?," Public Choice, Springer, vol. 148(3), pages 459-470, September.
    14. Michael Kosfeld & Akira Okada & Arno Riedl, 2009. "Institution Formation in Public Goods Games," American Economic Review, American Economic Association, vol. 99(4), pages 1335-1355, September.
    15. B. Douglas Bernheim & Navin Kartik, 2014. "Candidates, Character, and Corruption," American Economic Journal: Microeconomics, American Economic Association, vol. 6(2), pages 205-246, May.
    16. Matthias Sutter & Stefan Haigner & Martin G. Kocher, 2010. "Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1540-1566.
    17. Andrea Mattozzi & Antonio Merlo, 2007. "The Transparency of Politics and the Quality of Politicians," American Economic Review, American Economic Association, vol. 97(2), pages 311-315, May.
    18. Jean‐Robert Tyran & Lars P. Feld, 2006. "Achieving Compliance when Legal Sanctions are Non‐deterrent," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 135-156, March.
    19. Daniel Houser & Sandra Ludwig & Thomas Stratmann, 2009. "Does Deceptive Advertising Reduce Political Participation? Theory and Evidence," Working Papers 1011, George Mason University, Interdisciplinary Center for Economic Science.
    20. Emrah Arbak & Marie Claire Villeval, 2013. "Voluntary Leadership: Selection and Influence," Post-Print halshs-00664830, HAL.
    21. Daniel Houser & Thomas Stratmann, 2008. "Selling favors in the lab: experiments on campaign finance reform," Public Choice, Springer, vol. 136(1), pages 215-239, July.
    22. Barnett,William A. & Schofield,Norman & Hinich,Melvin (ed.), 1993. "Political Economy: Institutions, Competition and Representation," Cambridge Books, Cambridge University Press, number 9780521428316.
    23. R. Cookson, 2000. "Framing Effects in Public Goods Experiments," Experimental Economics, Springer;Economic Science Association, vol. 3(1), pages 55-79, June.
    24. Caselli, Francesco & Morelli, Massimo, 2004. "Bad politicians," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 759-782, March.
    25. Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May.
    26. Ferraz, Claudio & Finan, Frederico S., 2008. "Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance," IZA Discussion Papers 3411, Institute of Labor Economics (IZA).
    27. Thomas Markussen & Ernesto Reuben & Jean‐Robert Tyran, 2014. "Competition, Cooperation and Collective Choice," Economic Journal, Royal Economic Society, vol. 124(574), pages 163-195, February.
    28. John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
    29. Pedro Dal Bo & Andrew Foster & Louis Putterman, 2007. "Institutions and Behavior: Experimental Evidence on the Effects of Democracy," Working Papers 2007-9, Brown University, Department of Economics.
    30. Fabio Galeotti & Daniel John Zizzo, 2015. "Competence versus Honesty : What Do Voters Care About ?," Working Papers 1520, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    31. John R. Hamman & Roberto A. Weber & Jonathan Woon, 2011. "An Experimental Investigation of Electoral Delegation and the Provision of Public Goods," American Journal of Political Science, John Wiley & Sons, vol. 55(4), pages 738-752, October.
    32. Robert Barro, 1973. "The control of politicians: An economic model," Public Choice, Springer, vol. 14(1), pages 19-42, March.
    33. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    34. Messner, Matthias & Polborn, Mattias K., 2004. "Paying politicians," Journal of Public Economics, Elsevier, vol. 88(12), pages 2423-2445, December.
      • Matthias Messner & Mattias Polborn, 2003. "Paying Politicians," Working Papers 246, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    35. Coate, Stephen & Morris, Stephen, 1995. "On the Form of Transfers in Special Interests," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1210-1235, December.
    36. Pedro Dal Bo & Andrew Foster & Louis Putterman, 2010. "Institutions and Behavior: Experimental Evidence on the Effects of Democracy," American Economic Review, American Economic Association, vol. 100(5), pages 2205-2229, December.
    37. Putterman, Louis & Tyran, Jean-Robert & Kamei, Kenju, 2011. "Public goods and voting on formal sanction schemes," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1213-1222, October.
    38. Houser, Daniel & Morton, Rebecca & Stratmann, Thomas, 2011. "Turned on or turned out? Campaign advertising, information and voting," European Journal of Political Economy, Elsevier, vol. 27(4), pages 708-727.
    39. Drazen, Allan & Ozbay, Erkut, 2016. "Does “Being Chosen to Lead†Induce Non-Selfish Behavior? Experimental Evidence on Reciprocity," CEPR Discussion Papers 11338, C.E.P.R. Discussion Papers.
    40. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    41. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2010. "Political Selection and Persistence of Bad Governments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1511-1575.
    42. Rupert Sausgruber, 2009. "A note on peer effects between teams," Experimental Economics, Springer;Economic Science Association, vol. 12(2), pages 193-201, June.
    43. Navin Kartik & R. Preston McAfee, 2007. "Signaling Character in Electoral Competition," American Economic Review, American Economic Association, vol. 97(3), pages 852-870, June.
    44. Barnett,William A. & Schofield,Norman & Hinich,Melvin (ed.), 1993. "Political Economy: Institutions, Competition and Representation," Cambridge Books, Cambridge University Press, number 9780521417815.
    45. Sugato Dasgupta & Kenneth C. Williams, 2002. "A Principal-Agent Model of Elections with Novice Incumbents," Journal of Theoretical Politics, , vol. 14(4), pages 409-438, October.
    46. Levy, David M. & Padgitt, Kail & Peart, Sandra J. & Houser, Daniel & Xiao, Erte, 2011. "Leadership, cheap talk and really cheap talk," Journal of Economic Behavior & Organization, Elsevier, vol. 77(1), pages 40-52, January.
    47. Sutter, Matthias & Kocher, Martin & Haigner, Stefan, 2006. "Choosing the Stick or the Carrot? Endogenous Institutional Choice in Social Dilemma Situations," CEPR Discussion Papers 5497, C.E.P.R. Discussion Papers.
    48. Thomas Markussen & Louis Putterman & Jean-Robert Tyran, 2014. "Self-Organization for Collective Action: An Experimental Study of Voting on Sanction Regimes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 301-324.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Government for the people, of the people, by people who are pretending
      by Nicholas Gruen in Club Troppo on 2017-04-03 18:05:24

    Citations

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


    Cited by:

    1. Casoria, Fortuna & Ciccone, Alice, 2021. "Do upfront investments increase cooperation? A laboratory experiment," European Economic Review, Elsevier, vol. 140(C).
    2. Galeotti, Fabio & Zizzo, Daniel John, 2018. "Identifying voter preferences: The trade-off between honesty and competence," European Economic Review, Elsevier, vol. 105(C), pages 27-50.
    3. Jensen, Thomas & Markussen, Thomas, 2021. "Group size, signaling and the effect of democracy," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 258-273.

    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. Nicklisch, Andreas & Grechenig, Kristoffel & Thöni, Christian, 2016. "Information-sensitive Leviathans," Journal of Public Economics, Elsevier, vol. 144(C), pages 1-13.
    2. Thomas Markussen & Jean-Robert Tyran, 2010. "Serving the Public Interest," Discussion Papers 10-11, University of Copenhagen. Department of Economics.
      • Thomas Markussen & Jean-Robert Tyran, 2010. "Serving the Public Interest," NRN working papers 2010-21, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    3. Philippos Louis & Matías Núñez & Dimitrios Xefteris, 2022. "The Virtuous Cycle of Agreement," The Economic Journal, Royal Economic Society, vol. 132(641), pages 326-360.
    4. Markussen, Thomas & Putterman, Louis & Tyran, Jean-Robert, 2016. "Judicial error and cooperation," European Economic Review, Elsevier, vol. 89(C), pages 372-388.
    5. Astrid Dannenberg & Carlo Gallier, 2020. "The choice of institutions to solve cooperation problems: a survey of experimental research," Experimental Economics, Springer;Economic Science Association, vol. 23(3), pages 716-749, September.
    6. Ernesto Dal Bó & Pedro Dal Bó & Erik Eyster, 2018. "The Demand for Bad Policy when Voters Underappreciate Equilibrium Effects," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(2), pages 964-998.
    7. Kamei, Kenju, 2014. "Promoting Competition or Helping Less-Endowed? An Experiment on Collective Institutional Choices under Intra-Group Inequality," MPRA Paper 56774, University Library of Munich, Germany.
    8. Balafoutas, Loukas & Kocher, Martin G. & Putterman, Louis & Sutter, Matthias, 2013. "Equality, equity and incentives: An experiment," European Economic Review, Elsevier, vol. 60(C), pages 32-51.
    9. Carlo Gallier & Martin Kesternich & Bodo Sturm, 2017. "Voting for Burden Sharing Rules in Public Goods Games," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 535-557, July.
    10. Jensen, Thomas & Markussen, Thomas, 2021. "Group size, signaling and the effect of democracy," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 258-273.
    11. Galeotti, Fabio & Zizzo, Daniel John, 2018. "Identifying voter preferences: The trade-off between honesty and competence," European Economic Review, Elsevier, vol. 105(C), pages 27-50.
    12. Kube, Sebastian & Schaube, Sebastian & Schildberg-Hörisch, Hannah & Khachatryan, Elina, 2015. "Institution formation and cooperation with heterogeneous agents," European Economic Review, Elsevier, vol. 78(C), pages 248-268.
    13. José Gabriel Castillo & Zhicheng Phil Xu & Ping Zhang & Xianchen Zhu, 2021. "The effects of centralized power and institutional legitimacy on collective action," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(2), pages 385-419, February.
    14. Fanny E. Schories, 2022. "The Influence of Indirect Democracy and Leadership Choice on Cooperation," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1173-1201, September.
    15. Thomas Markussen & Jean-Robert Tyran, 2023. "Is There a Dividend of Democracy? Experimental Evidence from Cooperation Games," CESifo Working Paper Series 10616, CESifo.
    16. Dannenberg, Astrid & Gallier, Carlo, 2019. "The choice of institutions to solve cooperation problems: A survey of experimental research," ZEW Discussion Papers 19-021, ZEW - Leibniz Centre for European Economic Research.
    17. Astrid Dannenberg & Carlo Gallier, 2019. "The Choice of Institutions to Solve Cooperation Problems: A Survey of Experimental Research," MAGKS Papers on Economics 201911, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    18. Mattozzi, Andrea & Merlo, Antonio, 2008. "Political careers or career politicians?," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 597-608, April.
    19. Peter Martinsson & Emil Persson, 2019. "Public Goods and Minimum Provision Levels: Does the Institutional Formation Affect Cooperation?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(4), pages 1473-1499, October.
    20. Antonio Merlo, 2005. "Whither Political Economy? Theories, Facts and Issues," PIER Working Paper Archive 05-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2005.

    More about this item

    Keywords

    political selection; pro-social behavior; social dilemma; corruption; voting;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    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:kud:kuiedp:1704. 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: Thomas Hoffmann (email available below). General contact details of provider: https://edirc.repec.org/data/okokudk.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.