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Campaign Contributions and the Desirability of Full Disclosure Laws

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  • Randolph Sloof

Abstract

In a signaling game model of costly political campaigning in which a candidate is dependent on a donor for campaign funds it is verified whether the electorate may benefit from campaign contributions being directly observed. By purely focusing on the informational role of campaign contributions the model seems somewhat biased against the potential benefits of direct observation. Still, the conclusion can be drawn that directly observable contributions allow for more information being revealed in equilibrium. Using this result, from an informational perspective a case can be built for the desirability of full disclosure laws.

Suggested Citation

  • Randolph Sloof, 1999. "Campaign Contributions and the Desirability of Full Disclosure Laws," Economics and Politics, Wiley Blackwell, vol. 11(1), pages 83-107, March.
    • Handle: RePEc:bla:ecopol:v:11:y:1999:i:1:p:83-107
    DOI: 10.1111/1468-0343.00054
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    Cited by:

    1. Schnakenberg, Keith & Turner, Ian R, 2023. "Formal Theories of Special Interest Influence," SocArXiv 47e26, Center for Open Science.
    2. Austen-Smith, David & Banks, Jeffrey S., 2002. "Costly signaling and cheap talk in models of political influence," European Journal of Political Economy, Elsevier, vol. 18(2), pages 263-280, June.
    3. Dmitry Shapiro & Arthur Zillante, 2017. "Contribution Limits and Transparency in a Campaign Finance Experiment," Southern Economic Journal, John Wiley & Sons, vol. 84(1), pages 98-119, July.

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