Consider a wide definition of a conspiracy as a secret plan between two parties or more to do something, legal or illegal, that hurts somebody else’s interest for the purpose of furthering their own mutual interests. This definition is close to the dictionary’s (“A secret plan by a group to do something unlawful or harmful”), although it focuses less on secrecy. For instance, a firm is a general conspiracy to wage competition against other firms’ interests and it manages small conspiracies, only some of which are secret. Government actors are the masters of conspiracies.
The problem is to distinguish good from bad conspiracies, and plausible from implausible conspiracies (or “conspiracy theories,” as specific conspiracy claims are often called). A bit of economics is especially useful to make the latter distinction.
To be engaged in by an individual, a conspiracy must promise a good likelihood of higher benefits than costs for the individual himself. If this is not true for the minimum number of conspirators required, the conspiracy will not happen. Focusing on the costs, the difference between a plausible and an implausible conspiracy is often determined by whether it is legal or illegal since an illegal conspiracy that is uncovered brings severe punishments, that is, higher costs.
There are conspiracies in any spontaneous order, in any system of individual relations without a central and effective coercive authority. Subgroups of individuals always engage in more or less secret plans to further their own interests. In the case of illegal conspiracies, the higher the expected punishment (cost of punishment times the probability it will be metered), the less frequently they will happen.
Some spontaneous order also exists in any conspiracy. Conspirators don’t necessarily act in a way that is consistent with the conspiracy. In a firm, individuals sacrifice more or less the company’s interest to further their own interests. In an army, the foot soldiers at the end of the chain of command don’t do exactly what the faraway general intended them to do (see Gordon Tullock, Bureaucracy, in The Selected Works of Gordon Tullock, edited by Charles K. Rowley, Liberty Fund, 2005).
There is some spontaneous order in illegal conspiracies. Spontaneous rules developed within groups of pirates to help further their objectives (see the work of Peter Leeson). But in some circumstances, the self-interested behavior of individual conspirators leads them to act against the conspiracy. A conspirator will rat on his co-conspirators if he thinks that the conspiracy is on the verge of being unmasked and that he can thereby reduce his own punishment. And he is even more motivated to spill the beans as he knows that his co-conspirators are equally motivated. If a co-conspirator is going to denounce me, I better denounce him first. The famous Prisoner Dilemma models such interactions.
The more numerous the conspirators need to be and the longer and more complex their plan, the less likely each one will participate, because he knows he can be betrayed by any of the others. The less likely it is that such a conspiracy will materialize.
Conspiracy hoaxes are implausible conspiracies precisely because they ignore these individual incentives. Given the decentralization and complexity of the American election system, a large election fraud—one that has some chance of changing the election result—would need much complicity, including from government actors. The government conspirators’ individual benefits in terms of future power, perks, and money can be large, but their costs, if the conspiracy is uncovered, will also be large. In a country with severe penalties for interfering with voting or tampering with ballot boxes, with a host of independent investigating authorities and judges, with a free press and a pack of Pulitzer-chasing journalists, the cost will likely be too high for any individual to engage in a vast electoral fraud.
A conspiracy to “steal” the recent presidential election is not completely impossible, but it is highly implausible. It is not more incentive-compatible than, say, Pizzagate (an imagined conspiracy of Democratic pedophiles in a DC pizzeria) or than the claim, pushed by Alex Jones, that the Sandy Hook murders did not really happen. If my argument is not true, the difference between the United States and banana republics would be blurred.
These explanations by incentives overlap Ockham’s razor: in explaining election results, choose the theory that is the simplest—although determining what is simpler is not always simple.
If the foregoing is true, we would expect that most if not all election conspiracies would be run by foreigners under the umbrella of their own governments. In such cases, the individual cost of being unmasked is relatively low and may well be lower than the benefits conferred by the government. That the rulers of Russia would mount a conspiracy to influence the result of an American election, especially to favor a narcissist and potential puppet, is certainly incentive-compatible, although it is not in itself proof of the conspiracy.
There is a demand for conspiracy theories, as co-blogger Scott Sumner recently argued and, in response, there is a supply of them, a supply that has dramatically increased with the reduction in their production (including diffusion) cost. In this post, I looked at the supply side.
An extreme example of conspiracy theory is the one peddled by the president of an organization called Judicial Watch: “elite units of the National Guard” fed the ballots of several states into a quantum computer (nothing less!) and were also able, with a GPS technology and the ballots’ “ink made of corn,” to follow their travel; the conclusion is that Trump won reelection with “over 80%” of the legal vote (see beforeitsnews.com). In that particular conspiracy theory, everything is nonsense, from the beginning to the end. The criminal actions of the guardsmen and their superiors and accomplice are not incentive-compatible. Time is scarce: don’t waste yours with that sort of conspiracy theory.
READER COMMENTS
Alan Goldhammer
Nov 16 2020 at 8:56am
Pierre – good post! Isn’t the fundamental question why so many Americans believe in conspiracy theories? There is a pretty long history of this. One of the great works about this is Charles Mackay’s ‘Extraordinary Popular Delusions and the Madness of Crowds’ (also a great book on investing) that was written over a century ago. You can get a free copy over at Project Gutenberg.
Pierre Lemieux
Nov 16 2020 at 11:56am
The question you raise is an important one and not easy to answer.
IVV
Nov 16 2020 at 3:05pm
This is just my anecdote, but I believe it stems from the “Protestant Work Ethic” concept that is common in the US. The crux of the belief is that hard work is sufficient to do better in life. When hard work proves to be insufficient to achieve financial security, you can either modify your belief, or double down on the belief and decide that there must be some shadowy power trying to make sure you stay on the bottom.
Weir
Nov 17 2020 at 3:35am
This is what Americans watching Chet Huntley on NBC on the night of the assassination of JFK were told: “There is in this country, and there has been for too long, an ominous and sickening popularity of hatred. The body of the President, lying at this moment in Washington, is a thundering testimonial of what hatred comes to and the revolting excesses it perpetrates. Hatred is self-generating, contagious, it feeds upon itself and explodes into violence. It is no inexplicable phenomenon that there are pockets of hatred in our country, areas and communities where the disease is permitted or encouraged or given status by those who can and do influence others. You and I have heard, in recent months, someone say, ‘Those Kennedys ought to be shot.’ A well-known national magazine recently carried an article saying Chief Justice Warren ought to be hanged. In its own defence, it said it was only joking. But the left has been equally bad. Tonight, it might be the hope and resolve of all of us that we’ve heard the last of this kind of talk, jocular or serious, for the result is tragically the same.”
And Americans watching CBS the following year were told that Barry Goldwater is another Adolf Hitler, and that viewers should support Lyndon Johnson, and to support his wars. And soon enough the best and the brightest, who had told Americans these things for their own good and because America’s ignorant and irresponsible “areas” needed to support the president, what they discovered was that Americans weren’t as trustful as they had been that night when Chet Huntley delivered his non sequitur about how National Review, and not Lee Harvey Oswald, is really to blame for the death of JFK.
That’s my explanation for why Americans of the boomer generation, at least, are into conspiracy theories and Robert Redford films.
Joshua Yearsley
Nov 16 2020 at 10:35am
I agree with the analysis in your post completely, but the hilarious “quantum computing” conspiracy did not come from Judicial Watch, according to Politifact:nhttps://www.politifact.com/factchecks/2020/nov/11/instagram-posts/no-judicial-watch-didnt-publish-bogus-story-about-/
Daniel A Hill
Nov 16 2020 at 10:36am
Simple rule: people are terrible at keeping secrets.
Especially when they think they’ve gotten away with something. The temptation to brag is too strong.
Therefore: any conspiracy theory that depends on more than a handful keeping a secret for more than a few days is utterly implausible.
David S
Nov 18 2020 at 2:14am
I agree with half of the premise – secret conspiracies are unlikely. But that does not mean that election fraud is unlikely. The three likely ways to have election fraud are through the actions of lone wolves, organized crime, or in the public eye.
I believe it does not stretch the definition of fraud too far to include altering election rules to favor one candidate or the other. For example, if late votes favor a candidate, excepting late ballots (in conflict with the laws governing elections) would be fraudulent. Or if one method of voting favored a candidate, then correcting errors in one voting method (in conflict with the laws governing elections) would be fraudulent. Both of those appear to have happened in the latest election, and were “widespread”, for certain values of widespread.
I guess to a certain extent, the existence of organized crime destroys the theory that one can’t keep secrets.
Scott Sumner
Nov 16 2020 at 3:05pm
I’ve always thought that this is why the 1991 coup attempt in the Soviet Union failed. To be big enough to succeed, it would have had to be too big to keep secret.
Craig
Nov 16 2020 at 3:16pm
There is another problem with conspiracies, generally. You know, you might have a secret and one day you might decide to share that secret with somebody. At that point of course, you may have many things in this world, but one of them is not a secret.
Indeed, as more and more people are told this secret, that secret might even be an ‘open’ secret, which is really a kind of non-secret where everybody simply pretends they don’t know the secret to save the person embarrassed by the reality of the secret.
This is where large conspiracies will break down, basically people are really bad at actually keeping secrets as it turns out.
Still, I would say, frankly, I just don’t give a damn. Here’s the thing, there’s alot of money on the line here and I want my money. Am I willing to lie to prevent the governments (plural) from taking more than half my income? An action I consider to be illegitimate? I don’t care if 50%+1 said this.
And yes, that is where the Democrats are headed, they’re there in high tax blue states and Biden wants to raise the marginal rate to 39.6% over 400k AND blow out the social security ceiling over 400k. The Democrats have been looking for ways to take out the social security ceiling and instead of doing that they’ll do it for over 400k and let the ceiling slowly close the donut hole.
Don’t even get me started on court packing.
MarkW
Nov 16 2020 at 4:04pm
In a country with severe penalties for interfering with voting or tampering with ballot boxes, with a host of independent investigating authorities and judges, with a free press and a pack of Pulitzer-chasing journalists, the cost will likely be too high for any individual to engage in a vast electoral fraud.
Lol. At this point, the chances of a journalist chasing (or winning) a Pulitzer based on uncovering voter fraud that helped Democrats is effectively zero, so we can scratch that — just as reporters and newspapers did not fall all over themselves to investigate Hunter and Joe’s excellent influence-peddling adventures in Ukraine and China before the election and nor will they ever after (Yes, the NY Post may publish such stories, but they will be ignored, suppressed as disinformation, and certainly never awarded Pulitzers).
But anyway, the theory would not be of a vast, organized national conspiracy, but rather unorganized, independent cheating efforts enabled to operate at a greater scale by mail-in voting. Certainly there has long been vote fraud and vote buying and rigging in certain corrupt cities with powerful political machines, and certainly too, mail-in ballots make all of that easier to do and harder to detect.
All of that said, I’ve never been a Trump supporter and I don’t think fraud was at a level that could have changed the outcome, but you’re refuting the weakest vote fraud argument. Try ‘steelmanning’ instead.
Pierre Lemieux
Nov 16 2020 at 4:31pm
The weakest vote fraud argument is that a rational individual would risk a felony (even if it were a small risk) for a practically zero chance of changing the election result. I did not discuss this argument, so obvious it is. The number of these frauds, on one side as on the other, is necessarily very small. This is why frauds must be organized by people who, through the fraud, would command a number of pivotal votes, in the millions.
zeke5123
Nov 16 2020 at 6:06pm
You don’t need millions of illegal votes; tens of thousands in the right swing states will do just fine.
Pierre Lemieux
Nov 16 2020 at 6:37pm
No, I don’t think so. In the current election, Trump would have needed hundreds of thousands of additional votes. Remember that Nevada gave Biden the electoral college before many large states (including North Carolina, Georgia, Pennsylvania, if I remember well) had been called. Moreover, even if somebody had had these hundreds of thousand votes in his virtual pocket, he would have had to know before the election where to use them. It would have required a major criminal conspiracy. Finally, if pulling such an illegal conspiracy was so easy, Trump, from all we know about him, would have pulled it first.
Alan Goldhammer
Nov 16 2020 at 7:40pm
Also, you need to consider that there was potential vote fraud on the part of the Republicans. How can you explain abnormally high turnouts in many Republican areas. These may be below the radar screen because of the right-wing preoccupation with the Democratic votes. Pause for a moment and consider that this may be the classic misdirection to get people to look away from the real fraud in the election!!!!
I say all of the above tongue in cheek but only if you are willing to be a ‘conspiracy’ devotee, give equal weights to both sides.
Pierre Lemieux
Nov 16 2020 at 8:27pm
Alan: That’s a good point: there is no reason to believe that spontaneous individual fraud (from not very rational voters) is biased towards one party or the other. And if it has been at the last election, it may very well be on the Republican side: voters thinking they have a sacred mission given by their Commander in Chief!
On your other point:
Now, that’s a conspiracy! It may not require a large number of people and may not even be illegal–except to the extent that it consciously supports the main conspiracy.
zeke5123
Nov 17 2020 at 11:07am
I have actually made that point to someone (pointing out that the nature of our election security allowed voter fraud and it could be Republicans not Democrats).
However, statistical irregularities seem to suggest fraud is on the democrat side (also seems easier to commit fraud in heavy partisan precincts which tend to be more Democrat).
Mark Z
Nov 16 2020 at 7:13pm
I don’t agree; I would expect much more voter fraud to be committed spontaneously by individuals than by organized conspiracies, for precisely the reasons in your post. In contrast, there are many individuals who could pretty easily get away with one or two fraudulent ballots. E.g., someone voting ‘on behalf’ of an elderly parent or legally adult child who lives in the same residence. Particularly if you know the other person doesn’t plan on actually voting. It’s true that it doesn’t pass a rational cost-benefit analysis, but then again neither does voting at all, and yet many millions of people still do it.
Pierre Lemieux
Nov 16 2020 at 8:16pm
Mark: Millions of people vote because it’s a cheap way of expression. It does not bring any other benefit for the individual voter. So put a cost on voting–a large punishment in case of illegal voting–and few will vote.* Hence the rarity of individual electoral fraud. That sort of fraud is rare, but so is large-scale fraud capable of changing an election result: the common denominator is incentives.
* Before poll taxes were made illegal in Southern states, “a six-dollar poll tax in 1960 reduced the probability of an individual voting by 42 percent.” (Citation here.)
Mark Z
Nov 17 2020 at 2:31am
But hasn’t research pretty conclusively found that the severity of the punishment for a crime isn’t nearly as important as a deterrent as the probability of getting caught? I could imagine the likelihood of getting caught in situations like this are close enough to 0 that the punishment is no deterrent at all.
Pierre Lemieux
Nov 17 2020 at 11:07am
Richard Nixon has been caught for not much more. Bill Clinton has been caught for much less.
BW
Nov 16 2020 at 4:41pm
Can you cite a source for that?
robc
Nov 16 2020 at 5:00pm
Google Tammany Hall.
Pierre Lemieux
Nov 16 2020 at 6:25pm
Indeed. In Power and Coercion (Princeton U. Press, 2015), Gary Gerstle describes the control of elections by political machines in the 19th century and early 20th century–including Tammany Hall in NYC. (I reviewed this book in Regulation.) It was then accepted that individual votes could be openly “sold” in exchange for patronage (jobs and such). This may have been more obvious at the state than the federal level. At any rate, there were few of today’s laws against interference by political machines. Until about 1890, voting was not secret. The situation is very different today (thanks in large part to the early-20th-century Progressives, who followed the Populists). Paradoxically, this is demonstrated by Trump’s own desperate efforts to have elections annulled or ballots recounted or destroyed by invoking the law. Election fraud (voting without being eligible) by individuals is a very marginal phenomenon (explained by incentives) and is sanctioned by criminal prosecutions.
MarkW
Nov 16 2020 at 6:48pm
Election fraud (voting without being eligible) by individuals is a very marginal phenomenon (explained by incentives) and is sanctioned by criminal prosecutions.
That’s not the kind of chicanery I’d expect now — what I’d expect is votes from eligible voters to be coerced, incentivized, harvested and bundled. Local organizers who make sure that a group of voters request their absentee ballots, ‘help’ them vote, and then collect the ballots and deliver them. Again, I don’t think there was near enough of this to swing the election, but that’s the kind of thing I’d expect, rather than hacking voting machines or votes from dead people. We used to have secret ballots for good reasons.
Komori
Nov 16 2020 at 8:15pm
Vast election fraud is not likely, but it’s also not likely. Our voting systems are largely highly vulnerable to insider attacks. Check out http://www.blackboxvoting.org for one set of examples. They’ve been pushing election security issues since long before Trump was elected.
The biggest problem is simply that our voting systems are largely not designed to be auditable or secure. Too many of them rely on Access databases on the backed (see the Hart InterCivic eSlate as an example, which is particularly egregious since there’s no paper trail at all involved), which have no auditing or worthwhile logging or even access control. Anyone with access to the system could make untraceable and undetectable changes at essentially no risk (the only risk would be getting caught while actually making changes).
Very few districts in the US do even basic things that would work towards election security and verification, like random recount audits after the election. Outside of two-party observation of counts, our system is largely missing anything that would actually increase trust in the process, and even that it weaker than it could be (since the major parties have gotten pretty good at locking out third parties).
I don’t know what systems were involved in the key states, but it’s highly likely any fraud to flip the election would have only needed a small number of people who didn’t coordinate at all. Unfortunately, we’ve pretty much set things up to make this impossible to prove or disprove.
Komori
Nov 16 2020 at 8:16pm
In that first sentence, I meant “Vast election fraud is not likely, but it’s also not necessary).
robc
Nov 17 2020 at 5:37pm
Well before 2016, I was calling for 6-sigma voting methods. I am not really a fan of 6-sigma, but it is better than what we have now. And I am not sure any secret ballot system could pass 6-sigma requirements, but its a goal to shoot for.
I like what my state (or my county anyway) does – this is my first year here, but it was what I had been suggesting, so obviously it wasn’t my idea:
Vote via computer screen, ballot then prints out, with your selections printed in readable format so you can double check. There is also a scanning section so the scantron machine can read your ballot.
What should happen next is every precinct is required to hand check a few random races vs the machine count. The total ballots and the vote totals should match exactly. If they don’t, every race is hand counted.
That is good enough for the counting end, but the security on the front end, verifying that the person casting the ballot is the person they say they are, and they are eligible is another issue altogether, especially with mail in ballots.
Weir
Nov 17 2020 at 3:06am
Time is scarce, and so we defer to authorities.
But what if, on one side, we have a respected law professor talking about extending reparations payments to the Latinx community, and on the other we have a Pulitzer-winning journalist announcing that the Latinx community are themselves oppressors, fully complicit in the system of white supremacy against POC?
So when these two authorities are at odds, to which authority do we turn?
Joe Biden’s chief of staff tells his followers on Twitter that America’s elections are rigged. But the chief executive of Twitter, another chief, says the opposite.
Elizabeth Warren says the whole system in America is rigged. Jane Mayer, in the New Yorker, says the same thing but then there’s John Updike, also in the New Yorker: “America is a vast conspiracy to make you happy.”
Personally whenever I hear an academic talking about a complex system of oppression or the internalized oppression and the false consciousness of the capitalist, patriarchal system’s unwitting agents I guess what this highly credentialed person means, specifically, is that medical examiners are apparently doctoring toxicology reports and coroners are lying about contusions and the direction of gunfire.
There are pundits and professors who must have watched too much HBO and so for the whole elaborate system to function the conspirators needed to install trap doors under the lounge room floor, just waiting for that moment when they can press a button and take out the one person who threatens to expose the conspiracy for what it is.
Jon Murphy
Nov 17 2020 at 7:36am
I must admit, I admire the optimism of conspiracy theorists. Having spent my adult life working in organizations where monitoring is easy, all parties agree the end goal is desirable, and face no legal constraints still fail to properly work together, i admire the theorists perception that such vast conspiracies can be carried out so utterly perfectly.
Joe
Nov 17 2020 at 9:21am
If a group was able to pull off such a complex ploy, maybe they shoudl be the ones we want in charge. The level of ingeneuty, brilliance, and guile needed to execute such a ploy are sorely needed in our system of governance today.
Jon Murphy
Nov 17 2020 at 11:33am
Were that ingenuity, brilliance, and guile used for good, I’d agree.
Jose Pablo
Nov 18 2020 at 8:51pm
The post is great, and the conclusion stands. But the proposition “people to engage in a behavior (a conspiracy in this case) have to get a “benefit””, is a tautology since the definition of “benefit” required for this proposition to be true is “something that increase the wellbeing (the “utility”, to use the economist lingo) of the individual enough for him to engage in a given behavior”.
There are plenty of Peronist in Argentina and of “Chavistas” in Venezuela. The “benefit” they get from “engaging in this behavior” is that they feel great about themselves by doing so, despite the material costs.
The only way we have to measure “utility” is thru the revealed preferences of the individuals. That makes “utility” a very circular way of explaining the reasons behind those preferences.
Loquitur Veritatem
Nov 27 2020 at 11:39pm
A coup is a conspiracy. And, to succeed, it must be kept under wraps. But when it has succeeded, it reveals itself. The sudden discovery of enough votes in Wisconsin, Michigan, and Pennsylvania to elect Biden looks to me like the fruit of parallel conspiracies that were hatched four years ago when the conspirators were surprised by Trump’s narrow wins in those States.
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