Review of Economic Studies Vol. 86 No. 2 2019
Informative Cheap Talk in Elections
Abstract
Why do office-motivated politicians sometimes espouse views that are non-congruent with their electorate’s? Can non-congruent statements convey any information about what a politician will do if elected, and if so, why would voters elect a politician who makes such statements? Furthermore, can electoral campaigns also directly affect an elected official’s behaviour? We develop a model of credible “cheap talk”—costless and non-binding communication—in elections. The foundation is an endogenous voter preference for a politician who is known to be non-congruent over one whose congruence is sufficiently uncertain. This preference arises because uncertainty about an elected official’s policy preferences generates policymaking distortions due to reputation/career concerns. We show that cheap talk can alter the electorate’s beliefs about a politician’s policy preferences and thereby affect the elected official’s behaviour. Informative cheap talk can increase or decrease voter welfare, with a greater scope for welfare benefits when reputation concerns are more important.
- DOI
- 10.1093/restud/rdy009
- Volume
- 86
- Issue
- 2
- Pages
- 755-784
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref