Ideology signaling in electoral politics

This paper considers an electoral model in which an incumbent and a challenger have ideological policy preferences that are private information. The incumbent may bias pre-electoral policies to signal preferences to the electorate with the aim of affecting the outcome of the election. When the two candidates are of completely different types, such a policy bias can occur only in a moderate direction. However, when their possible types overlap, a policy bias can be created in either a moderate or an extreme direction.