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The War of Information

  • Faruk Gul
  • Wolfgang Pesendorfer

We analyse political contests (campaigns) between two parties with opposing interests. Parties provide costly information to voters who choose a policy. The information flow is continuous and stops when both parties quit. Parties' actions are strategic substitutes: increasing one party's cost makes that party provide more and its opponent provide less information. For voters, parties' actions are complements and hence raising the advantaged party's cost may be beneficial. Asymmetric information adds a signalling component resulting in a belief threshold at which the informed party's decision to continue campaigning offsets other unfavourable information. Copyright 2012, Oxford University Press.

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File URL: http://www.princeton.edu/~pesendor/warinfo.pdf
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Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 321307000000000921.

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Date of creation: 14 Mar 2007
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Handle: RePEc:cla:levrem:321307000000000921
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  1. Cripps, Martin William & Keller, R Godfrey & Rady, Sven, 2003. "Strategic Experimentation with Exponential Bandits," CEPR Discussion Papers 3814, C.E.P.R. Discussion Papers.
  2. Patrick Bolton & Christopher Harris, 1999. "Strategic Experimentation," Econometrica, Econometric Society, vol. 67(2), pages 349-374, March.
  3. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December.
  4. Giuseppe Moscarini & Lones Smith, 2001. "The Optimal Level of Experimentation," Econometrica, Econometric Society, vol. 69(6), pages 1629-1644, November.
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