Advanced Search
MyIDEAS: Login

Taking Advice from Imperfectly Informed Lobbyists: When to Match Hawks with Hawks

Contents:

Author Info

  • Frisell, Lars

    (Dept. of Economics, Stockholm School of Economics)

Registered author(s):

    Abstract

    In this paper we study a sender-receiver game between an uninformed government and two informed lobbyists. There is a conflict of interest between government and lobbyists in the sense that the government's payoff is state-dependent while lobbyists prefer a certain policy irrespective of the contingency. Hence, lobbyists' recommendations cannot be trusted a priori and a single lobbyist will convey no information in equilibrium. When two or more lobbyists interact non-cooperatively, matters improve. Our main result is that, contrasting previous results, homogeneous panels may be preferred to a heterogeneous one. If lobbyists are perfectly informed the first-best equilibrium exists even when the game has cheap talk. Moreover, if inaccurate messages impose a cost on the sender, i.e., if lobbyists care about their prestige, the assumption of perfectly informed advisors is not necessary to sustain truthtelling. In other words, reputational concerns work as a substitute for informational precision.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://swopec.hhs.se/hastef/papers/hastef0355.pdf.zip
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0355.pdf
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0355.ps.zip
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0355.ps
    Download Restriction: no

    Bibliographic Info

    Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 355.

    as in new window
    Length: 22 pages
    Date of creation: 03 Feb 2000
    Date of revision:
    Handle: RePEc:hhs:hastef:0355

    Contact details of provider:
    Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
    Phone: +46-(0)8-736 90 00
    Fax: +46-(0)8-31 01 57
    Email:
    Web page: http://www.hhs.se/
    More information through EDIRC

    Related research

    Keywords: Heterogeneous vs. homogeneous panels; informational efficiency; reputation; external forces;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Gilligan, Thomas W & Krehbiel, Keith, 1987. "Collective Decisionmaking and Standing Committees: An Informational Rationale for Restrictive Amendment Procedures," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 287-335, Fall.
    2. Shin Hyun Song, 1994. "The Burden of Proof in a Game of Persuasion," Journal of Economic Theory, Elsevier, vol. 64(1), pages 253-264, October.
    3. Andreoni, James A & Miller, John H, 1993. "Rational Cooperation in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 103(418), pages 570-85, May.
    4. Paul Milgrom & John Roberts, 1986. "Relying on the Information of Interested Parties," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 18-32, Spring.
    5. Austen-Smith David, 1993. "Interested Experts and Policy Advice: Multiple Referrals under Open Rule," Games and Economic Behavior, Elsevier, vol. 5(1), pages 3-43, January.
    6. V. Crawford & J. Sobel, 2010. "Strategic Information Transmission," Levine's Working Paper Archive 544, David K. Levine.
    7. Krishna, V. & Morgan, J., 1999. "A Model of Expertise," Papers 206, Princeton, Woodrow Wilson School - Public and International Affairs.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0355

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Lundin).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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