A Folk Theorem for Repeated Elections with Adverse Selection
I establish a folk theorem for a model of repeated elections with adverse selection: when citizens are sufficiently patient, arbitrary policy paths through arbitrarily large regions of the policy space can be supported by a refinement of perfect Bayesian equilibrium. Politicians are policy-motivated (so office benefits cannot be used to incentivize policy choices), the policy space is one-dimensional (limiting the dimensionality of the set of utility imputations), and politicians’ preferences are private information (so punishments cannot be targeted to a specific type). The equilibrium construction relies critically on differentiability and strict concavity of citizens’ utility functions. An extension of the arguments allows policy paths to depend on the office holder’s type, subject to incentive compatibility constraints.
|Date of creation:||May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: University of Rochester, Wallis Institute, Harkness 109B Rochester, New York 14627 U.S.A.|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johannes Hörner & Takuo Sugaya & Satoru Takahashi & Nicolas Vieille, 2011. "Recursive Methods in Discounted Stochastic Games: An Algorithm for δ→ 1 and a Folk Theorem," Econometrica, Econometric Society, vol. 79(4), pages 1277-1318, 07.
- McKelvey, Richard D., 1976. "Intransitivities in multidimensional voting models and some implications for agenda control," Journal of Economic Theory, Elsevier, vol. 12(3), pages 472-482, June.
- John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
- John Duggan & Mark Fey, 2006. "Repeated Downsian electoral competition," International Journal of Game Theory, Game Theory Society, vol. 35(1), pages 39-69, December.
- Drew Fudenberg & David K. Levine & Eric Maskin, 1994.
"The Folk Theorem with Imperfect Public Information,"
Levine's Working Paper Archive
2058, David K. Levine.
- Fudenberg, Drew & Levine, David I & Maskin, Eric, 1994. "The Folk Theorem with Imperfect Public Information," Econometrica, Econometric Society, vol. 62(5), pages 997-1039, September.
- Drew Fudenberg & David K. Levine & Eric Maskin, 1994. "The Folk Theorem with Imperfect Public Information," Levine's Working Paper Archive 394, David K. Levine.
- Fudenberg, D. & Levine, D.K. & Maskin, E., 1989. "The Folk Theorem With Inperfect Public Information," Working papers 523, Massachusetts Institute of Technology (MIT), Department of Economics.
- John Duggan & Jeffrey S. Banks, 2008.
"A Dynamic Model of Democratic Elections in Multidimensional Policy Spaces,"
Wallis Working Papers
WP53, University of Rochester - Wallis Institute of Political Economy.
- Banks, Jeffrey S. & Duggan, John, 2008. "A Dynamic Model of Democratic Elections in Multidimensional Policy Spaces," Quarterly Journal of Political Science, now publishers, vol. 3(3), pages 269-299, October.
- Bernhardt, Dan & Campuzano, Larissa & Squintani, Francesco & Câmara, Odilon, 2009. "On the benefits of party competition," Games and Economic Behavior, Elsevier, vol. 66(2), pages 685-707, July.
- Norman Schofield, 1983. "Generic Instability of Majority Rule," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 695-705.
- Fudenberg, Drew & Yamamoto, Yuichi, 2011.
"The folk theorem for irreducible stochastic games with imperfect public monitoring,"
Journal of Economic Theory,
Elsevier, vol. 146(4), pages 1664-1683, July.
- Fudenberg, Drew & Yamamoto, Yuichi, 2011. "The Folk Theorem for Irreducible Stochastic Games with Imperfect Public Monitoring," Scholarly Articles 8896226, Harvard University Department of Economics.
- McKelvey, Richard D, 1979. "General Conditions for Global Intransitivities in Formal Voting Models," Econometrica, Econometric Society, vol. 47(5), pages 1085-1112, September.
- John Duggan, .
"Repeated Elections with Asymmetric Information,"
Wallis Working Papers
WP9, University of Rochester - Wallis Institute of Political Economy.
- Adam Meirowitz, 2007. "Probabilistic Voting and Accountability in Elections with Uncertain Policy Constraints," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(1), pages 41-68, 02.
- Bernhardt, Dan & Dubey, Sangita & Hughson, Eric, 2004. "Term limits and pork barrel politics," Journal of Public Economics, Elsevier, vol. 88(12), pages 2383-2422, December.
- Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, March.
- Banks, Jeffrey S. & Sundaram, Rangarajan K., 1998. "Optimal Retention in Agency Problems," Journal of Economic Theory, Elsevier, vol. 82(2), pages 293-323, October.
- Quan Wen, 2002. "A Folk Theorem for Repeated Sequential Games," Review of Economic Studies, Oxford University Press, vol. 69(2), pages 493-512.
- repec:oup:restud:v:78:y:2011:i:2:p:487-522 is not listed on IDEAS
- Norman Schofield, 1978. "Instability of Simple Dynamic Games," Review of Economic Studies, Oxford University Press, vol. 45(3), pages 575-594.
When requesting a correction, please mention this item's handle: RePEc:roc:wallis:wp64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard DiSalvo)
If references are entirely missing, you can add them using this form.