Policy Making with Reputation Concerns ∗
نویسندگان
چکیده
We study the policy choice of an office-holding politician who is concerned with the public’s perception of his capabilities. The politician decides whether to maintain the status quo or to conduct a risky reform. The success of the reform depends critically upon the abilities of the politician, which is privately known to the politician. The public observes both his policy choice and the outcome of the reform, and forms a posterior on the true ability of the politician. We show that politicians may engage in socially detrimental reform in order to be perceived as more capable. Conservative institutions that thwart reform may potentially improve social welfare. JEL Nos: C72, D72, D82
منابع مشابه
Campaign Rhetoric and Policy Making under Career Concerns
In this paper I develop a model of political platform choice and subsequent policy implementation decisions by political candidates who are primarily motivated by career concerns. Although political platforms are non binding, politicians have some incentive to keep campaign promises in order to uphold their reputation. I analyze the electoral outcome and the determinants which influence the dec...
متن کاملTrust, Reputation and Quality of E-Banking Services (Case Study: Melli Bank Customers)
In today’s very competitive world gaining competitive advantage is bound to arranging products and services of companies and businesses in accordance with customers’ needs. For this purpose, gaining reputation in E-service can be quite helpful. Thus the goal of the present research is studying the effect of E-Banking Service Quality on Bank Reputation. So a coherent collection of structures wer...
متن کاملPrivacy Issues with Sharing and Computing Reputation across Communities
Online communities are the new-age platform for sharing information and experiences with groups of people. Members of a community are dealing with the daily conflict of having to decide what information they are willing to disclose in order to increase their reputation. Fear of possible privacy loss may lead a member to avoid sharing information with others, even when acting anonymously. Privac...
متن کاملStructural and Institutional Determinants of Influence Reputation : A Comparison of Collaborative and Adversarial Policy Networks in Decision Making and Implementation
The central assumption in the literature on collaborative networks and policy networks is that political outcomes are affected by a variety of state and nonstate actors. Some of these actors are more powerful than others and can therefore have a considerable effect on decision making. In this article, we seek to provide a structural and institutional explanation for these power differentials in...
متن کاملFirst Impressions Matter: Signalling as a Source of Policy Dynamics
We first establish that policymakers on the Bank of England's Monetary Policy Committee choose lower interest rates with experience. We then reject increasing confidence in private information or learning about the structure of the macroeconomy as explanations for this shift. Instead, a model in which voters signal their hawkishness to observers better fits the data. The motivation for signalli...
متن کامل