Misinformation

Abstract

A candidate for political office has private information about his and his rival's qualifications. A more informative positive (negative) campaign generates a more accurate public signal about his own (his rival's) qualifications, but costs more. A high type candidate has a comparative advantage in negative campaigns if, relative to the low type, he can lower the voter's belief about his rival more effectively than he can raise her belief about himself; and vice versa. In equilibrium, this comparative advantage determines whether the high type chooses a positive or negative campaign. Further, competition helps the high type separate.

Keywords: Positive and negative campaign, informativeness, least cost separation

JEL Classification: D72, D82, D83