We analyze a psychologically-based model of voter turnout in an election with common value and uncertainty. Our model yields distinctive comparative statics results. First, an increase in the proportion of informed citizens may cause the winning margin for the right candidate to either rise or...

We study a sender's optimal choice of precision when he selects from a class of random signals to persuade a receiver to accept his request, with higher costs associated with higher precision. The receiver observes both the precision and a random realization of the signal. We characterize...

We study indefinitely lived assets in experimental markets and find that the traded prices of these assets are, on average, about 40% of the risk-neutral fundamental value. Neither uncertainty about the value of total dividend payments nor horizon uncertainty about the duration of trade can...

Is increasing political competition good for voters? We study this question in the political career concerns framework. Our results show that the relationship between political competition, viewed as the cost of challenging incumbent politicians, and the politicians' incentive to behave in the...

Adopting the group turnout model of Herrera and Mattozzi, J. Eur. Econ. Assoc. 2010, 8, 838-871, we investigate direct democracy with supermajority rule and different preference intensities for two sides of a referendum: Reform versus status quo. Two parties spend money and effort to mobilize...