Lobbying, Information Transmission and Unequal Representation
AbstractWe study the effects of unequal representation in the interest-group system on the degree of information transmission between a lobbyist and a policy-maker. Employing a dynamic cheap-talk model in which the lobbyist cares instrumentally about his reputation for truth telling, we show that the larger the inequality, the less information can credibly be transmitted to the policy-maker. We also investigate the effects of inequality on welfare, and discuss the welfare effects of institutions that increase transparency but which, as an unintended side effect, lower the lobbyist’s incentives for truth telling.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4313.
Date of creation: Mar 2004
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Other versions of this item:
- Johan Lagerlöf & Lars Frisell, 2004. "Lobbying, Information Transmission, and Unequal Representation," CIG Working Papers SP II 2004-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Johan Lagerlof & Lars Frisell, 2004. "Lobbying, Information Transmission, and Unequal Representation," Public Economics 0402003, EconWPA.
- Johan Lagerlof & Lars Frisell, 2004. "Lobbying, Information Transmission, and Unequal Representation," Microeconomics 0402013, EconWPA.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-13 (All new papers)
- NEP-MIC-2004-06-13 (Microeconomics)
- NEP-POL-2004-06-13 (Positive Political Economics)
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