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Persuading Voters

American Economic Review 2016 106(11), 3590-3605 open access
In a symmetric information voting model, an individual (politician) can influence voters' choices by strategically designing a policy experiment (public signal). We characterize the politician's optimal experiment. With a nonunanimous voting rule, she exploits voters' heterogeneity by designing an experiment with realizations targeting different winning coalitions. Consequently, under a simple-majority rule, a majority of voters might be strictly worse off due to the politician's influence. We characterize voters' preferences over electoral rules and provide conditions for a majority of voters to prefer a supermajority (or unanimity) voting rule, in order to induce the politician to supply a more informative experiment.

When Does Coordination Require Centralization?

American Economic Review 2008 98(1), 145-179 open access
This paper compares centralized and decentralized coordination when managers are privately informed and communicate strategically. We consider a multidivisional organization in which decisions must be adapted to local conditions but also coordinated with each other. Information about local conditions is dispersed and held by self-interested division managers who communicate via cheap talk. The only available formal mechanism is the allocation of decision rights. We show that a higher need for coordination improves horizontal communication but worsens vertical communication. As a result, decentralization can dominate centralization even when coordination is extremely important relative to adaptation.