IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2204.08876.html
   My bibliography  Save this paper

Transparency and Policymaking with Endogenous Information Provision

Author

Listed:
  • Hanzhe Li

Abstract

How does the politician's reputation concern affect information provision when the information is endogenously provided by a biased lobbyist? I develop a model to study this problem and show that the answer depends on the transparency design. When the lobbyist's preference is publicly known, the politician's reputation concern induces the lobbyist to provide more information. When the lobbyist's preference is unknown, the politician's reputation concern may induce the lobbyist to provide less information. One implication of the result is that given transparent preferences, the transparency of decision consequences can impede information provision by moderating the politician's reputational incentive.

Suggested Citation

  • Hanzhe Li, 2022. "Transparency and Policymaking with Endogenous Information Provision," Papers 2204.08876, arXiv.org, revised Dec 2023.
  • Handle: RePEc:arx:papers:2204.08876
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2204.08876
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yeon-Koo Che & Navin Kartik, 2009. "Opinions as Incentives," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 815-860, October.
    2. Andrea Prat, 2005. "The Wrong Kind of Transparency," American Economic Review, American Economic Association, vol. 95(3), pages 862-877, June.
    3. Ashworth, Scott & Shotts, Kenneth W., 2010. "Does informative media commentary reduce politicians' incentives to pander?," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 838-847, December.
    4. Richard Ball, 1995. "Interest Groups, Influence And Welfare," Economics and Politics, Wiley Blackwell, vol. 7(2), pages 119-146, July.
    5. Fu, Qiang & Li, Ming, 2014. "Reputation-concerned policy makers and institutional status quo bias," Journal of Public Economics, Elsevier, vol. 110(C), pages 15-25.
    6. Saed Alizamir & Francis de Véricourt & Shouqiang Wang, 2020. "Warning Against Recurring Risks: An Information Design Approach," Management Science, INFORMS, vol. 66(10), pages 4612-4629, October.
    7. Kolotilin, Anton, 2018. "Optimal information disclosure: a linear programming approach," Theoretical Economics, Econometric Society, vol. 13(2), May.
    8. Lohmann, Susanne, 1995. "Information, Access, and Contributions: A Signaling Model of Lobbying," Public Choice, Springer, vol. 85(3-4), pages 267-284, December.
    9. Thomas Groll & Christopher J. Ellis, 2017. "Repeated Lobbying By Commercial Lobbyists And Special Interests," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1868-1897, October.
    10. Bar-Isaac Heski, 2012. "Transparency, Career Concerns, and Incentives for Acquiring Expertise," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-15, January.
    11. Prendergast, Canice & Stole, Lars, 1996. "Impetuous Youngsters and Jaded Old-Timers: Acquiring a Reputation for Learning," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1105-1134, December.
    12. Matthew Gentzkow & Jesse M. Shapiro, 2006. "Media Bias and Reputation," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 280-316, April.
    13. Balmaceda, Felipe, 2021. "Private vs. public communication: Difference of opinion and reputational concerns," Journal of Economic Theory, Elsevier, vol. 196(C).
    14. Levy, Gilat, 2004. "Anti-herding and strategic consultation," European Economic Review, Elsevier, vol. 48(3), pages 503-525, June.
    15. Potters, Jan & van Winden, Frans, 1992. "Lobbying and Asymmetric Information," Public Choice, Springer, vol. 74(3), pages 269-292, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zerbini, Antoine, 2023. "The Case for Lobbying Transparency," SocArXiv w6vam, Center for Open Science.
    2. Fox, Justin & Van Weelden, Richard, 2010. "Partisanship and the effectiveness of oversight," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 674-687, October.
    3. Stephen Hansen & Michael McMahon & Andrea Prat, 2018. "Transparency and Deliberation Within the FOMC: A Computational Linguistics Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(2), pages 801-870.
    4. Clemens A. Otto & Paolo F. Volpin, 2018. "Marking to Market and Inefficient Investment Decisions," Management Science, INFORMS, vol. 64(8), pages 3756-3771, August.
    5. Bergemann, Dirk & Ottaviani, Marco, 2021. "Information Markets and Nonmarkets," CEPR Discussion Papers 16459, C.E.P.R. Discussion Papers.
    6. Christian Salas, 2019. "Persuading policy-makers," Journal of Theoretical Politics, , vol. 31(4), pages 507-542, October.
    7. Klein, Nicolas & Mylovanov, Tymofiy, 2017. "Will truth out?—An advisor’s quest to appear competent," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 112-121.
    8. Arnaud Dellis & Mandar Oak, 2020. "Subpoena power and informational lobbying," Journal of Theoretical Politics, , vol. 32(2), pages 188-234, April.
    9. Wolton, Stephane, 2016. "Lobbying, Inside and Out: How Special Interest Groups Influence Policy Choices," MPRA Paper 68637, University Library of Munich, Germany.
    10. Elisabeth Schulte & Mike Felgenhauer, 2017. "Preselection and expert advice," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(3), pages 693-714, August.
    11. Lagerlof, Johan, 1997. "Lobbying, information, and private and social welfare," European Journal of Political Economy, Elsevier, vol. 13(3), pages 615-637, September.
    12. Balmaceda, Felipe, 2021. "Private vs. public communication: Difference of opinion and reputational concerns," Journal of Economic Theory, Elsevier, vol. 196(C).
    13. Martin Gregor, 2016. "Tullock's Puzzle in Pay-and-Play Lobbying," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 368-389, November.
    14. Andina-Díaz, Ascensión & García-Martínez, José A., 2020. "Reputation and news suppression in the media industry," Games and Economic Behavior, Elsevier, vol. 123(C), pages 240-271.
    15. Fei Li & Jidong Zhou, 2020. "A Model of Crisis Management," Cowles Foundation Discussion Papers 2266, Cowles Foundation for Research in Economics, Yale University.
    16. Bilgehan Karabay, 2009. "Lobbying Under Asymmetric Information," Economics and Politics, Wiley Blackwell, vol. 21(1), pages 1-41, March.
    17. Catonini, Emiliano & Stepanov, Sergey, 2023. "Reputation and information aggregation," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 156-173.
    18. Fu, Qiang & Li, Ming, 2014. "Reputation-concerned policy makers and institutional status quo bias," Journal of Public Economics, Elsevier, vol. 110(C), pages 15-25.
    19. Chen, Chia-Hui & Ishida, Junichiro, 2015. "Careerist experts and political incorrectness," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 1-18.
    20. Ralph Boleslavsky & Tracy R. Lewis, 2011. "Advocacy and Dynamic Delegation," Working Papers 2011-7, University of Miami, Department of Economics.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2204.08876. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.