Redistributive Politics with Distortionary Taxation

This paper proposes a first step towards a positive theory of tax instruments. We present a model that extends models of redistributive politics by Myerson (1993) and Lizzeri and Persico (2001). Two politicians compete in terms of targeted redistributive promises nanced through distortionary taxes. We solve for the case of both targetable and non-targetable taxes. We prove that there is an imperfect efficiency-targetability trade off on the tax side. Politicians prefer targetable taxes over non-targetable ones, especially when the latter are less efficient. Yet, targetable taxation is always used even when it is very inefficient compared to non-targetable t

Party Organization and Electoral Competition

We propose a model in which two parties select the internal organization that helps them win the election. Party choices provide incent

The impact of party organization on electoral outcomes

We present a model of electoral competition in which parties act as brands and use competition to select their candidates. We show that the forces that shape the competition between party representatives and independents rationalize the positive correlation between inequality and polarization documented by McCarty, Poole and Rosenthal [2006] for the us. We also show that, when voters are badly informed about the quality of candidates, it is optimal for party to use primaries to get an edge on independent candidates. This rationalizes the introduction of the American direct primary in the us at the beginning of the twentieth century.SCOPUS: ar.jinfo:eu-repo/semantics/publishe

Costly Signalling in Auctions

Another issue related to bidding strategy is whether to be bold or cautious in opening bidding. The man who strongly desires an item will jump in with both feet, as it were, or try to rout the enemy by starting out with a high, possibly loud, bid intended to "knock out" his opponents. Sometimes he even tops his own bid. This approach may discourage competitors at the outset and prevent them from ever getting caught up in the spirit of the bidding. In a very different strategy, a prospective buyer, even though determined to purchase an item, bids tentatively and cautiously in order to feel out the opposition. He hopes that by indicating a low regard for the offering he will lull opponents into a false sense of security. (Ralph Cassady, Jr) Copyright 2007 The Review of Economic Studies Limited.