Political Economy of Right-Wing Populism: Bayesian Persuasion Party Competition Model

Student: Gorlevich Daniil

Educational Programme: Economics and Economic Policy (Master)

Year of Graduation: 2024

In the recent decades, the political outcomes in developed democracies started to diverge from the political economy predictions. It is widely hypothesized that economic group became a weaker vote determinant, as a new cultural axis of political conflict emerged. In the current models, this process is considered to be exogenous. We contribute to the literature by making campaign dimensions subject to party choice. We employ the Bayesian Persuasion model. We obtain a result, where a party with competitive advantage on culture benefits from persuading voters on cultural salience. The amount of persuasion depends on the competitive advantage of the party.

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