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Do More Powerful Interest Groups have a Disproportionate Influence on Policy?

Author

Listed:
  • Zara Sharif

    (Erasmus University Rotterdam)

  • Otto H. Swank

    (Erasmus University Rotterdam)

Abstract

Decisions-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.

Suggested Citation

  • Zara Sharif & Otto H. Swank, 2012. "Do More Powerful Interest Groups have a Disproportionate Influence on Policy?," Tinbergen Institute Discussion Papers 12-134/VII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20120134
    as

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    File URL: https://papers.tinbergen.nl/12134.pdf
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    References listed on IDEAS

    as
    1. Thomas Stratmann, 2005. "Some talk: Money in politics. A (partial) review of the literature," Public Choice, Springer, vol. 124(1), pages 135-156, July.
    2. Vijay Krishna & John Morgan, 2001. "A Model of Expertise," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 747-775.
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    7. Robert Dur & Otto H. Swank, 2005. "Producing and Manipulating Information," Economic Journal, Royal Economic Society, vol. 115(500), pages 185-199, January.
    8. Potters, Jan & van Winden, Frans, 1992. "Lobbying and Asymmetric Information," Public Choice, Springer, vol. 74(3), pages 269-292, October.
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    Cited by:

    1. Chulyoung Kim & Paul S. Koh, 2020. "Court‐appointed experts and accuracy in adversarial litigation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(3), pages 282-305, September.
    2. Kim, Chulyoung, 2015. "Centralized vs. Decentralized Institutions for Expert Testimony," MPRA Paper 69618, University Library of Munich, Germany.

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    More about this item

    Keywords

    information collection; communication; interest groups; decision-making;
    All these keywords.

    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

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