Two parties have different goals. Voters, but not parties, are uncertain
about the functioning of the economy, in this case the costs of producing
a public good. The parties each propose a policy, an election is held and
the policy of the winning party is implemented. Voters and parties
care about the level of the public good and costs. Two kinds of sequential
equilibria exist; revealing, where voters learn the true costs and the
implemented policy adjusts to costs, and non-revealing. If parties'
preferences are polarized, only non-revealing equilibria fulfill a refinement
criterion like the intuitive criterion. If they are alike, only revealing
equilibria fulfill this criterion. Thus, less political polarization improves
information revelation.