Read my lips, watch for leaps: Preference equilibrium and political instability

Chaim Fershtman, Aviad Heifetz

Research output: Contribution to journalArticlepeer-review

Abstract

As norms and tastes adapt to the social conditions shaped by policy variables, voters' opinions about these policies may evolve as well. We show how this process can lead to political instability. Moreover, if a politician's platform is shaped opportunistically so as to gain the majority's support, once in office the politician should not implement the promised policy in order to remain popular and get re-elected. Rather, the effective policy in this respect is the one which will be deemed optimal by most voters after the norms and opinions will adjust to that very policy.

Original languageEnglish
Pages (from-to)246-265
Number of pages20
JournalEconomic Journal
Volume116
Issue number508
DOIs
StatePublished - Jan 2006

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