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An Informational Perspective on Administrative Procedures

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  • de Figueiredo, Rui J P, Jr
  • Spiller, Pablo T
  • Urbiztondo, Santiago

Abstract

A number of scholars have identified the important role administrative procedures have in 'structuring' the interest group environment of government agencies: determining who can participate and in what manner. Using a formal model, we analyze the incentives and outcomes that different procedural--and therefore interest group--environments generate. The model yields a number of important conclusions. First, because elected officials are concerned not only about distributional rents, but also informational ones, the use of procedures in some cases will result in worse outcomes for political principals on the policy dimension. Officials will be willing to bear the losses in exchange for informational gains. Second, under certain conditions, a politician is better off with a biased group monitoring the agency rather than a neutral one, since biased groups will subsidize a portion of the monitoring cost. Third, having multiple interest groups, including one in opposition to the politician, makes the political principal strictly better off than any other constellation of monitors, since competing interest groups will provide the greatest information at the lowest cost to the elected official. Copyright 1999 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Journal of Law, Economics and Organization.

Volume (Year): 15 (1999)
Issue (Month): 1 (April)
Pages: 283-305

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Handle: RePEc:oup:jleorg:v:15:y:1999:i:1:p:283-305

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Cited by:
  1. Pablo T Spiller & Rafael Gely, 2007. "Strategic Judicial Decision Making," Levine's Working Paper Archive 122247000000001409, David K. Levine.
  2. Spiller, Pablo T., 2013. "Transaction cost regulation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 232-242.
  3. Tom Ginsburg, 2002. "Comparative Administrative Procedure: Evidence from Northeast Asia," Constitutional Political Economy, Springer, vol. 13(3), pages 247-264, September.
  4. Santiago Urbiztondo & Fernando Navajas & Daniel Artana, 1998. "La autonomía de los entes reguladores argentinos: Agua y cloacas, gas natural, energía eléctrica y telecomunicaciones," Research Department Publications 3038, Inter-American Development Bank, Research Department.
  5. Paul Levine & Neil Rickman & Francesc Trillas, 2006. "Price Regulation and the Commitment Problem: Can Limited Capture be Beneficial?," School of Economics Discussion Papers 0106, School of Economics, University of Surrey.
  6. Peter Grajzl, 2011. "A property rights approach to legislative delegation," Economics of Governance, Springer, vol. 12(2), pages 177-200, June.
  7. Brito, Duarte & Pereira, Pedro & Vareda, João, 2011. "Investment, dynamic consistency and the sectoral regulator's obective," 8th Asia-Pacific Regional ITS Conference, Taipei 2011: Convergence in the Digital Age 52341, International Telecommunications Society (ITS).
  8. Marian W. Moszoro & Pablo T. Spiller, 2012. "Third-Party Opportunism and the Nature of Public Contracts," NBER Working Papers 18636, National Bureau of Economic Research, Inc.
  9. Joanne Evans & Paul Levine & Fransesc Trillas, 2006. "Lobbies, Delegation and the Under-investment Problem in Regulation," School of Economics Discussion Papers 2006, School of Economics, University of Surrey.
  10. Pablo T. Spiller, 2008. "An Institutional Theory of Public Contracts: Regulatory Implications," NBER Working Papers 14152, National Bureau of Economic Research, Inc.
  11. Mariano Tommasi & Pablo T. Spiller, 2004. "The Institutions of Regulation," Working Papers 67, Universidad de San Andres, Departamento de Economia, revised Mar 2004.
  12. Fremeth, Adam R. & Holburn, Guy L. F., 2010. "Information Asymmetries and Regulatory Decision Costs: An Analysis of U.S. Electric Utility Rate Changes 1980–2000," Working paper 595, Regulation2point0.

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