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Does Electoral Competition create Incentives for Political Parties to collect Information about the Pros and Cons of Alternative Policies?

Author

Listed:
  • Silvia Dominguez Martinez

    (Faculty of Economics and Business, University of Amsterdam)

  • Otto H. Swank

    (Erasmus School of Economics, Erasmus Universiteit Rotterdam)

Abstract

A well-known rationale for representative democracy is that direct democracy leads to a free-rider problem as to the collection of information. A problem with this rationale is that it takes for granted that representatives collect information. In this paper we examine whether or not electoral competition induces political parties or candidates to collect information about policy consequences. We show that the answer to this question depends on the cost of information collection. More surprisingly, we find that endogenizing information may lead to divergence of policy platforms.

Suggested Citation

  • Silvia Dominguez Martinez & Otto H. Swank, 2004. "Does Electoral Competition create Incentives for Political Parties to collect Information about the Pros and Cons of Alternative Policies?," Tinbergen Institute Discussion Papers 04-133/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040133
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    References listed on IDEAS

    as
    1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    2. Alesina, Alberto, 1988. "Credibility and Policy Convergence in a Two-Party System with Rational Voters," American Economic Review, American Economic Association, vol. 78(4), pages 796-805, September.
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    Keywords

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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