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Pandering and state-specific costs of mismatch in political agency

Author

Listed:
  • Merzoni, Guido
  • Trombetta, Federico
Abstract
We study the implications of state-dependent costs of policy mismatch in political agency models where politicians have reputational concerns and “good” politicians share the same objectives as the voters. We find that state-dependent costs can increase the set of parameters where pandering is an equilibrium strategy. Indeed, in our model, pandering can arise even without office rents. Moreover, we show that voters do not necessarily prefer biased politicians to be in favour of the policy that produces the cheapest expected cost of mismatch.

Suggested Citation

  • Merzoni, Guido & Trombetta, Federico, 2022. "Pandering and state-specific costs of mismatch in political agency," Games and Economic Behavior, Elsevier, vol. 135(C), pages 132-143.
    • Handle: RePEc:eee:gamebe:v:135:y:2022:i:c:p:132-143
    DOI: 10.1016/j.geb.2022.05.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Asymmetric mismatch; Pandering; Political agency; Special interest groups; Populism;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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