Information Aggregation in Stratified Societies

26 Pages Posted: 27 Apr 2020 Last revised: 3 Aug 2023

See all articles by Marina Agranov

Marina Agranov

California Institute of Technology

Ran Eilat

Ben-Gurion University of the Negev

Konstantin Sonin

University of Chicago - Harris School of Public Policy

Multiple version iconThere are 2 versions of this paper

Date Written: July 31, 2023

Abstract

We analyze a model of political competition in which the elite forms endogenously to aggregate information and advise the uninformed median voter which candidate to choose. The median voter knows whether or not the endorsed candidate is biased toward the elites, but might still prefer the biased candidate if the elite’s endorsement provides sufficient information about her competence. The elite size and the degree of information aggregation by the elite depend on the extent to which the median voter follows the elite’s advice. A higher cost of redistribution minimizes the elite’s information advantage, hinders information transmission, and decreases the expected competence of the elected politician.

Keywords: trust, inequality, political economy, cheap talk, information club

JEL Classification: D72, D83

Suggested Citation

Agranov, Marina and Eilat, Ran and Sonin, Konstantin, Information Aggregation in Stratified Societies (July 31, 2023). University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2020-50, Available at SSRN: https://ssrn.com/abstract=3585370 or http://dx.doi.org/10.2139/ssrn.3585370

Marina Agranov

California Institute of Technology ( email )

Pasadena, CA 91125
United States

HOME PAGE: http://www.hss.caltech.edu/~magranov/

Ran Eilat

Ben-Gurion University of the Negev ( email )

Be'er Sheva
8410501
Israel

Konstantin Sonin (Contact Author)

University of Chicago - Harris School of Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

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