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The War of Information

  • Gul, Faruk

    (Princeton University)

  • Pesendorfer, Wolfgang

    (Princeton University)

We analyze political campaigns between two parties with opposing interests. Parties pay a cost to provide information to a voter who chooses the policy. The information flow is continuous and stops when parties quit. The parties' actions are strategic substitutes: a party with a lower cost provides more but its opponent provides less information. For voters, the parties' actions are complements and raising the low-cost party's cost may be beneficial. Asymmetric information adds a signaling component in the form of a belief-threshold beyond which unfavorable information is offset by the informed party's decision to continue campaigning.

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File URL: https://www.princeton.edu/~pesendor/warinfo.pdf
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Paper provided by Princeton University, Research Program in Political Economy in its series Papers with number 9-13-2010.

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Date of creation: Sep 2010
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Handle: RePEc:ecl:prirpe:9-13-2010
Contact details of provider: Web page: http://weblamp.princeton.edu/rppe/papers/papers.php
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  1. Patrick Bolton & Christopher Harris, 1999. "Strategic Experimentation," Econometrica, Econometric Society, vol. 67(2), pages 349-374, March.
  2. Giuseppe Moscarini & Lones Smith, 2001. "The Optimal Level of Experimentation," Econometrica, Econometric Society, vol. 69(6), pages 1629-1644, November.
  3. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December.
  4. Godfrey Keller & Martin Cripps, 2003. "Strategic Experimentation with Exponential Bandits," Economics Series Working Papers 143, University of Oxford, Department of Economics.
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