The accountability of politicians in international crises and the nature of audience cost

Abstract

Abstract We study the problem of how citizens should punish or reward a leader's choices during international crises. Audiences should impose costs rooted in citizens’ preferences over policy outcomes, but that need not mean that these costs directly reflect the citizens’ preferences over actions. Instead, rewards and punishments are valued for their equilibrium consequences. To understand how citizens’ policy preferences shape electoral accountability, we characterize the retention strategies that maximize citizen welfare. In the optimal strategy, citizens always punish leaders who initiate crises and then back down. This is a robust finding, and true even though the citizens have no intrinsic preferences for policy consistency. Whether they punish leaders for backing down rather than going to war, on the other hand, depends on the status quo and on the costs of war. Importantly, these strategies of rewarding and punishing leaders need not have any immediate connection to voter's ex ante preferences over war and peace, even if preferences over policy outcomes ultimately motivate citizen behavior. This has important implications for interpreting empirical and experimental results related to audience costs.