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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 655:
Political Polarization

Avinash Dixit () and Jörgen Weibull ()

Abstract: Failures of government policies often provoke opposite reactions from citizens; some call for a reversal of the policy while others favor its continuation in stronger form. We offer an explanation of such polarization, based on a natural bimodality of preferences in political and economic contexts, and consistent with Bayesian rationality.

Keywords: polarization; voting; information; (follow links to similar papers)

JEL-Codes: D72; D74; D81; D82; (follow links to similar papers)

17 pages, August 22, 2006, Revised April 19, 2007

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