Information & Identity: An Application to Political Campaign Media

This paper proposes an extension of the Identity model developed by Akerlof and Kranton (2000) that incorporates a beliefs dimension based on the consumption of information. The model is then applied to the process by which consumer-voters consume campaign media and selectively accept information to vote. Based on the assumption that political parties act to maximize their stream of future contributions, I predict that parties will engage more heavily in behavior that induces individuals to discount (opposing) information when: (1) they have a relatively smaller share of total campaign funding; and (2) the relative cost of consuming media goods is higher. Finally, empirical evidence supporting these predictions is presented from the 1992-2002 US Senate elections. I would like to thank Professor Bruce Owen for the incredible amount of support and guidance he has provided for this thesis. His broad knowledge and considerable patience granted me the opportunity to explore and develop the ideas presented here.