IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v211y2022ics0047272722000688.html
   My bibliography  Save this article

Technological change, campaign spending and polarization

Author

Listed:
  • Balart, Pau
  • Casas, Agustin
  • Troumpounis, Orestis

Abstract

We present a model of electoral competition with endogenous platforms and campaign spending where the division of voters between impressionable and ideological is also endogenous and depends on parties’ strategic platform choices. Our approach results in a tractable model that provides interesting comparative statics on the effect of recent technological advancements. For instance, we can accommodate a new justification behind the well-documented simultaneous increase in campaign spending and polarization: an increase in the effectiveness of electoral advertising, or a decrease in the electorate’s political awareness, surely increases polarization and may also increase campaign spending.

Suggested Citation

  • Balart, Pau & Casas, Agustin & Troumpounis, Orestis, 2022. "Technological change, campaign spending and polarization," Journal of Public Economics, Elsevier, vol. 211(C).
  • Handle: RePEc:eee:pubeco:v:211:y:2022:i:c:s0047272722000688
    DOI: 10.1016/j.jpubeco.2022.104666
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047272722000688
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jpubeco.2022.104666?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    2. Enriqueta Aragonès & Micael Castanheira & Marco Giani, 2015. "Electoral Competition through Issue Selection," American Journal of Political Science, John Wiley & Sons, vol. 59(1), pages 71-90, January.
    3. Pastine, Ivan & Pastine, Tuvana, 2012. "Incumbency advantage and political campaign spending limits," Journal of Public Economics, Elsevier, vol. 96(1), pages 20-32.
    4. Christian Ewerhart, 2015. "Mixed equilibria in Tullock contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(1), pages 59-71, September.
    5. , & ,, 2012. "Choice by lexicographic semiorders," Theoretical Economics, Econometric Society, vol. 7(1), January.
    6. Horacio A Larreguy & John Marshall & James M SnyderJr, 2018. "Leveling the playing field: How campaign advertising can help non-dominant parties," Journal of the European Economic Association, European Economic Association, vol. 16(6), pages 1812-1849.
    7. José Alcalde & Matthias Dahm, 2007. "Tullock and Hirshleifer: a meeting of the minds," Review of Economic Design, Springer;Society for Economic Design, vol. 11(2), pages 101-124, September.
    8. Jörg L Spenkuch & David Toniatti, 2018. "Political Advertising and Election Results," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(4), pages 1981-2036.
    9. Callander, Steven & Wilson, Catherine H., 2006. "Context-dependent Voting," Quarterly Journal of Political Science, now publishers, vol. 1(3), pages 227-254, July.
    10. Hunt Allcott & Matthew Gentzkow, 2017. "Social Media and Fake News in the 2016 Election," NBER Working Papers 23089, National Bureau of Economic Research, Inc.
    11. Eguia, Jon X. & Nicolo, Antonio, 2019. "Information and targeted spending," Theoretical Economics, Econometric Society, vol. 14(2), May.
    12. J. Amegashie, 2006. "A contest success function with a tractable noise parameter," Public Choice, Springer, vol. 126(1), pages 135-144, January.
    13. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience Theory of Choice Under Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1243-1285.
    14. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2013. "Salience and Asset Prices," American Economic Review, American Economic Association, vol. 103(3), pages 623-628, May.
    15. Aragonès, Enriqueta & Xefteris, Dimitrios, 2012. "Candidate quality in a Downsian model with a continuous policy space," Games and Economic Behavior, Elsevier, vol. 75(2), pages 464-480.
    16. Ivan Pastine & Tuvana Pastine, 2010. "Political campaign spending limits," Working Papers 201034, School of Economics, University College Dublin.
    17. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    18. Epstein, Gil S. & Nitzan, Shmuel, 2004. "Strategic restraint in contests," European Economic Review, Elsevier, vol. 48(1), pages 201-210, February.
    19. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
    20. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2013. "Salience and Consumer Choice," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 803-843.
    21. Baron, David P., 1994. "Electoral Competition with Informed and Uninformed Voters," American Political Science Review, Cambridge University Press, vol. 88(1), pages 33-47, March.
    22. Enriqueta Aragonès & Dimitrios Xefteris, 2017. "Imperfectly Informed Voters And Strategic Extremism," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(2), pages 439-471, May.
    23. Gene M. Grossman & Elhanan Helpman, 1996. "Electoral Competition and Special Interest Politics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(2), pages 265-286.
    24. Jia, Hao & Skaperdas, Stergios & Vaidya, Samarth, 2013. "Contest functions: Theoretical foundations and issues in estimation," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 211-222.
    25. Prummer, Anja, 2020. "Micro-targeting and polarization," Journal of Public Economics, Elsevier, vol. 188(C).
    26. Leland, Jonathan W, 1994. "Generalized Similarity Judgments: An Alternative Explanation for Choice Anomalies," Journal of Risk and Uncertainty, Springer, vol. 9(2), pages 151-172, October.
    27. Ran Spiegler, 2014. "Competitive Framing," American Economic Journal: Microeconomics, American Economic Association, vol. 6(3), pages 35-58, August.
    28. Hao Jia, 2008. "A stochastic derivation of the ratio form of contest success functions," Public Choice, Springer, vol. 135(3), pages 125-130, June.
    29. Stokes, Donald E., 1963. "Spatial Models of Party Competition," American Political Science Review, Cambridge University Press, vol. 57(2), pages 368-377, June.
    30. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    31. M. Iaryczower, & Andrea Mattozzi, 2013. "On the Nature of Competition in Alternative Electoral Systems," Levine's Bibliography 786969000000001681, UCLA Department of Economics.
    32. Fouirnaies, Alexander, 2021. "How Do Campaign Spending Limits Affect Elections? Evidence from the United Kingdom 1885–2019," American Political Science Review, Cambridge University Press, vol. 115(2), pages 395-411, May.
    33. Bernardo S. Da Silveira & João M. P. De Mello, 2011. "Campaign Advertising and Election Outcomes: Quasi-natural Experiment Evidence from Gubernatorial Elections in Brazil," Review of Economic Studies, Oxford University Press, vol. 78(2), pages 590-612.
    34. Newton, Kenneth, 1999. "Mass Media Effects: Mobilization or Media Malaise?," British Journal of Political Science, Cambridge University Press, vol. 29(4), pages 577-599, September.
    35. JuanD. Carrillo & Micael Castanheira, 2008. "Information and Strategic Political Polarisation," Economic Journal, Royal Economic Society, vol. 118(530), pages 845-874, July.
    36. David W. Nickerson & Todd Rogers, 2014. "Political Campaigns and Big Data," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 51-74, Spring.
    37. Rubinstein, Ariel, 1988. "Similarity and decision-making under risk (is there a utility theory resolution to the Allais paradox?)," Journal of Economic Theory, Elsevier, vol. 46(1), pages 145-153, October.
    38. Aragones, Enriqueta & Palfrey, Thomas R., 2002. "Mixed Equilibrium in a Downsian Model with a Favored Candidate," Journal of Economic Theory, Elsevier, vol. 103(1), pages 131-161, March.
    39. Benjamin Bushong & Matthew Rabin & Joshua Schwartzstein, 2021. "A Model of Relative Thinking," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 162-191.
    40. Balart, Pau & Chowdhury, Subhasish M. & Troumpounis, Orestis, 2017. "Linking individual and collective contests through noise level and sharing rules," Economics Letters, Elsevier, vol. 155(C), pages 126-130.
    41. Agustin Casas & Yarine Fawaz & Andre Trindade, 2016. "Surprise Me If You Can: The Influence Of Newspaper Endorsements In U.S. Presidential Elections," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1484-1498, July.
    42. Anja Prummer, 2016. "Spatial Advertisement in Political Campaigns," Working Papers 805, Queen Mary University of London, School of Economics and Finance.
    43. Denter, Philipp, 2020. "Campaign contests," European Economic Review, Elsevier, vol. 127(C).
    44. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603, Decembrie.
    45. Herrera, Helios & Levine, David K. & Martinelli, César, 2008. "Policy platforms, campaign spending and voter participation," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 501-513, April.
    46. Nti, Kofi O, 1999. "Rent-Seeking with Asymmetric Valuations," Public Choice, Springer, vol. 98(3-4), pages 415-430, March.
    47. Daniel Cardona & Jenny De Freitas & Antoni Rubí-Barceló, 2018. "Polarization or Moderation? Intra-group heterogeneity in endogenous-policy contest," DEA Working Papers 87, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    48. Alexei Zakharov, 2009. "A model of candidate location with endogenous valence," Public Choice, Springer, vol. 138(3), pages 347-366, March.
    49. Hunt Allcott & Luca Braghieri & Sarah Eichmeyer & Matthew Gentzkow, 2020. "The Welfare Effects of Social Media," American Economic Review, American Economic Association, vol. 110(3), pages 629-676, March.
    50. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, I: Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 1-26.
    51. Salvatore Nunnari & Jan Zapal, 2017. "A Model of Focusing in Political Choice," Working Papers 599, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    52. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    53. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, II: Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 27-41.
    54. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    55. repec:oup:qjecon:v:128:y:2012:i:1:p:53-104 is not listed on IDEAS
    56. Enriqueta Aragonès & Dimitrios Xefteris, 2017. "Imperfectly Informed Voters And Strategic Extremism," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58, pages 439-471, May.
    57. Peter C. Fishburn, 1974. "Exceptional Paper--Lexicographic Orders, Utilities and Decision Rules: A Survey," Management Science, INFORMS, vol. 20(11), pages 1442-1471, July.
    58. Pablo Amorós & M. Puy, 2013. "Issue convergence or issue divergence in a political campaign?," Public Choice, Springer, vol. 155(3), pages 355-371, June.
    59. Ashworth, Scott & Bueno de Mesquita, Ethan, 2009. "Elections with platform and valence competition," Games and Economic Behavior, Elsevier, vol. 67(1), pages 191-216, September.
    60. Alcalde, José & Dahm, Matthias, 2010. "Rent seeking and rent dissipation: A neutrality result," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 1-7, February.
    61. Hunt Allcott & Matthew Gentzkow, 2017. "Social Media and Fake News in the 2016 Election," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 211-236, Spring.
    62. Luis C. Corchón & Marco Serena, 2018. "Contest theory," Chapters, in: Luis C. Corchón & Marco A. Marini (ed.), Handbook of Game Theory and Industrial Organization, Volume II, chapter 6, pages 125-146, Edward Elgar Publishing.
    63. Wang Zhewei, 2010. "The Optimal Accuracy Level in Asymmetric Contests," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-18, April.
    64. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Daniel Cardona & Jenny Freitas & Antoni Rubí-Barceló, 2023. "Polarization and conflict among groups with heterogeneous members," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 199-219, July.
    2. Denter, Philipp, 2020. "Campaign contests," European Economic Review, Elsevier, vol. 127(C).
    3. Denter, Philipp, 2021. "Valence, complementarities, and political polarization," Games and Economic Behavior, Elsevier, vol. 128(C), pages 39-57.
    4. Gaetan Fournier & Alberto Grillo & Yevgeny Tsodikovich, 2023. "Strategic flip-flopping in political competition," Papers 2305.02834, arXiv.org.
    5. Raghul S. Venkatesh, 2020. "Political activism and polarization," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1530-1558, September.
    6. Jacopo Bizzotto & Benjamin Solow, 2019. "Electoral Competition with Strategic Disclosure," Games, MDPI, vol. 10(3), pages 1-17, July.

    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. Ewerhart, Christian, 2017. "Contests with small noise and the robustness of the all-pay auction," Games and Economic Behavior, Elsevier, vol. 105(C), pages 195-211.
    2. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    3. Aragonès, Enriqueta & Xefteris, Dimitrios, 2017. "Voters' private valuation of candidates' quality," Journal of Public Economics, Elsevier, vol. 156(C), pages 121-130.
    4. Balart, Pau, 2021. "Semiorder preferences and price-oriented buyers in a Hotelling model," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 394-407.
    5. David K. Levine & Andrea Mattozzi, 2022. "Success in contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 595-624, April.
    6. J. Atsu Amegashie, 2012. "A Nested Contest: Tullock Meets the All-pay Auction," CESifo Working Paper Series 3976, CESifo.
    7. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    8. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    9. Yasmine Bekkouche & Julia Cage, 2019. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," SciencePo Working papers Main hal-03393084, HAL.
    10. Cagé, Julia & Bekkouche, Yasmine, 2018. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," CEPR Discussion Papers 12614, C.E.P.R. Discussion Papers.
    11. Livio Di Lonardo, 2017. "Valence uncertainty and the nature of the candidate pool in elections," Journal of Theoretical Politics, , vol. 29(2), pages 327-350, April.
    12. Rubén Poblete Cazenave, 2021. "Reputation Shocks and Strategic Responses in Electoral Campaigns," Tinbergen Institute Discussion Papers 21-049/V, Tinbergen Institute.
    13. Yasmine Bekkouche & Julia Cage & Edgard Dewitte, 2022. "The Heterogeneous Price of a Vote: Evidence from Multiparty Systems, 1993-2017," SciencePo Working papers Main hal-03389172, HAL.
    14. Dimitrios Xefteris, 2018. "Candidate valence in a spatial model with entry," Public Choice, Springer, vol. 176(3), pages 341-359, September.
    15. repec:hal:spmain:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    16. repec:hal:spmain:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    17. repec:hal:wpspec:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    18. repec:hal:wpspec:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    19. Michael K Miller, 2011. "Seizing the mantle of change: Modeling candidate quality as effectiveness instead of valence," Journal of Theoretical Politics, , vol. 23(1), pages 52-68, January.
    20. Fabian Gouret & Stéphane Rossignol, 2019. "Intensity valence," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(1), pages 63-112, June.
    21. Denter, Philipp, 2020. "Campaign contests," European Economic Review, Elsevier, vol. 127(C).
    22. Yohei Yamaguchi & Ken Yahagi, 2024. "Law enforcement and political misinformation," Journal of Theoretical Politics, , vol. 36(1), pages 3-36, January.
    23. Osório, António (António Miguel), 2018. "Conflict and Competition over Multi-Issues," Working Papers 2072/306550, Universitat Rovira i Virgili, Department of Economics.
    24. Prato, Carlo & Wolton, Stephane, 2018. "Rational ignorance, populism, and reform," European Journal of Political Economy, Elsevier, vol. 55(C), pages 119-135.

    More about this item

    Keywords

    Electoral competition; Office motives; Endogenous valence; Campaign spending; Impressionable voters; Semiorder lexicographic preferences;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    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:eee:pubeco:v:211:y:2022:i:c:s0047272722000688. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    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.