Economía

Signaling in Political Cycles. How far are you willing to go?

Número
193
Autor
Jorge M. Streb
Mes/Año
Jul-01
Adjunto
Resumen

Previous results on political cycles as a signal of competency assumed that opportunism was common knowledge. If opportunism is not common knowledge, there may be a partially pooling equilibriumwhere cycles indicate oppotunism rather than competency. Insofar as mores discretionality increases the asymmetry of information, the possibility of cycles increases, and elections may become less effective to select competent incumbents.