Why Voting? A Welfare Analysis

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2018
Volume: 10
Issue: 3
Pages: 253-71

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article studies costly signaling. The signaling effort is chosen in multiple periods and observed with noise. The signaler benefits from the belief of the market, not directly from the effort or the signal. Optimal signaling behavior in time-varying environments trades off effort-smoothing and influencing belief exactly when it yields a return. If the return to signaling first increases over time and then decreases, then the optimal effort rises slowly, reaches its maximum before the return does, and declines quickly. Advertising data displays this pattern.

Technical Details

RePEc Handle
repec:aea:aejmic:v:10:y:2018:i:3:p:253-71
Journal Field
General
Author Count
2
Added to Database
2026-01-25