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Auctioning Public Office

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Abstract

Campaign promises and campaign spending are modelled as integral parts of a signaling mechanism that transmits information about can- didates' abilities and proposed policies to the voters. We suggest that viewing promises and spending as inseparable parts of the same mechanism is essential in moving towards providing a microfoundation framework of political campaigns. Political competition in spending and promising is modeled as an auction which enables us to derive results about the laws governing political campaigns. The degree of commitment is crucial to the mixture of signaling used by candidates.

Suggested Citation

  • Costas Roumanias, 2008. "Auctioning Public Office," Discussion Paper Series 2008_08, Department of Economics, University of Macedonia, revised Sep 2008.
    • Handle: RePEc:mcd:mcddps:2008_08
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    References listed on IDEAS

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    More about this item

    Keywords

    Auctions; Elections; Political Competition; Political Campaigns; Campaign Promises; Campaign Spending.;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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