Do More Powerful Interest Groups have a Disproportionate Influence on Policy?
AbstractDecisions-makers often rely on information supplied by interested parties. In practice, some parties have easier access to information than other parties. In this light, we examine whether more powerful parties have a disproportionate influence on decisions. We show that more powerful parties influence decisions with higher probability. However, in expected terms, decisions do not depend on the relative strength of interested parties. When parties have not provided information, decisions are biased towards the less powerful parties. Finally, we show that compelling parties to supply information destroys incentives to collect information.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-134/VII.
Date of creation: 05 Dec 2012
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information collection; communication; interest groups; decision-making;
Find related papers by JEL classification:
- 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 Formulation and Implementation
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-CDM-2013-01-07 (Collective Decision-Making)
- NEP-CTA-2013-01-07 (Contract Theory & Applications)
- NEP-MIC-2013-01-07 (Microeconomics)
- NEP-POL-2013-01-07 (Positive Political Economics)
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