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Signaling with Reform: How the Threat of Corruption Prevents Informed Policy-making

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  • SCHNAKENBERG, KEITH E.
  • TURNER, IAN R.

Abstract

Lobbying is a potential source of corruption but is also a valuable source of information for policy-makers. We analyze a game-theoretic model that shows how the threat of corruption affects the incentives of noncorrupt politicians to enlist the help of lobbyists to make more informed decisions. Politicians face a dilemma because voters cannot always tell whether a politician allows access to lobbyists to solicit corruption or to seek information. Thus, a noncorrupt politician may deny access to lobbyists to signal that she is noncorrupt even though doing so impedes her ability to make good policy. This signaling may decrease the welfare of the voters depending on the value of the lost policy information relative to the value of screening out corrupt politicians.

Suggested Citation

  • Schnakenberg, Keith E. & Turner, Ian R., 2019. "Signaling with Reform: How the Threat of Corruption Prevents Informed Policy-making," American Political Science Review, Cambridge University Press, vol. 113(3), pages 762-777, August.
    • Handle: RePEc:cup:apsrev:v:113:y:2019:i:3:p:762-777_10
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    Cited by:

    1. Lamberova, Natalia, 2021. "The puzzling politics of R&D: Signaling competence through risky projects," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 801-818.
    2. Schnakenberg, Keith & Schumock, Collin & Turner, Ian R, 2023. "Dark Money and Voter Learning," SocArXiv r562d, Center for Open Science.
    3. Guido Merzoni & Federico Trombetta, 2021. "A Note on Asymmetric Policies: Pandering and State-specific Costs of Mismatch in Political Agency," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis2102, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    4. Blumenthal, Benjamin, 2021. "Political Agency and Legislative Subsidies with Imperfect Monitoring," SocArXiv ydfbs, Center for Open Science.
    5. Merzoni, Guido & Trombetta, Federico, 2022. "Pandering and state-specific costs of mismatch in political agency," Games and Economic Behavior, Elsevier, vol. 135(C), pages 132-143.

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