Misconceptions and Political Outcomes*
نویسنده
چکیده
A large literature shows that strategic interactions among actors with conflicting objectives can cause the political process to produce outcomes that lower welfare. This paper investigates an alternative explanation of such outcomes: if individuals’ errors in assessing the likely effects of proposed policies are correlated, democratic decisionmaking can produce welfare-reducing outcomes even in the absence of conflicting objectives. Under plausible assumptions, choosing candidates from among the best informed individuals does not remedy the problems created by such errors, but subsidising information and exposing representatives to information after their election do. Concentration of power has ambiguous effects.
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