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Congruence Among Voters and Contributions to Political Campaigns

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  • Elena Panova

Abstract

This paper builds a theory of electoral campaign contributions. Interest groups contribute to political campaigns to signal their private information on the valence of candidates for office. Campaign contributions by an interest group enhance electoral fortunes by a candidate who is valent with this group. The candidate preferred by an interest group whose private information is the most precise receives the highest contributions and wins political office. Campaign contributions are smaller than donor electoral sorting benefits.

Suggested Citation

  • Elena Panova, 2007. "Congruence Among Voters and Contributions to Political Campaigns," Cahiers de recherche 0722, CIRPEE.
  • Handle: RePEc:lvl:lacicr:0722
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    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2007/CIRPEE07-22.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Campaign contributions; incumbency advantage;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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