IDEAS home Printed from https://ideas.repec.org/a/sae/ratsoc/v29y2017i2p226-254.html
   My bibliography  Save this article

Information accuracy in legislative oversight: Theoretical implications and experimental evidence

Author

Listed:
  • Susumu Shikano

    (University of Konstanz, Germany)

  • Michael F Stoffel

    (University of Konstanz, Germany)

  • Markus Tepe

    (University of Oldenburg, Germany)

Abstract

The relationship between legislatures and bureaucracies is typically modeled as a principal–agent game. Legislators can acquire information about the (non-)compliance of bureaucrats at some specific cost. Previous studies consider the information from oversight to be perfect, which contradicts most real-world applications. We therefore provide a model that includes random noise as part of the information. The quality of provided goods usually increases with information accuracy while simultaneously requiring less oversight. However, bureaucrats never provide high quality if information accuracy is below a specific threshold. We assess the empirical validity of our predictions in a lab experiment. Our data show that information accuracy is indeed an important determinant of both legislator and bureaucrat decision-making.

Suggested Citation

  • Susumu Shikano & Michael F Stoffel & Markus Tepe, 2017. "Information accuracy in legislative oversight: Theoretical implications and experimental evidence," Rationality and Society, , vol. 29(2), pages 226-254, May.
    • Handle: RePEc:sae:ratsoc:v:29:y:2017:i:2:p:226-254
    DOI: 10.1177/1043463117700610
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1043463117700610
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1043463117700610?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Matteo Rizzolli & Luca Stanca, 2012. "Judicial Errors and Crime Deterrence: Theory and Experimental Evidence," Journal of Law and Economics, University of Chicago Press, vol. 55(2), pages 311-338.
    2. P.-A. Chiappori, 2002. "Testing Mixed-Strategy Equilibria When Players Are Heterogeneous: The Case of Penalty Kicks in Soccer," American Economic Review, American Economic Association, vol. 92(4), pages 1138-1151, September.
    3. Helen Z. Margetts, 2011. "Experiments for Public Management Research," Public Management Review, Taylor & Francis Journals, vol. 13(2), pages 189-208, February.
    4. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    5. Druckman, James N. & Green, Donald P. & Kuklinski, James H. & Lupia, Arthur, 2006. "The Growth and Development of Experimental Research in Political Science," American Political Science Review, Cambridge University Press, vol. 100(4), pages 627-635, November.
    6. Lupia,Arthur & McCubbins,Mathew D., 1998. "The Democratic Dilemma," Cambridge Books, Cambridge University Press, number 9780521585934.
    7. Arijit Mukherji & Kevin A. McCabe & David E. Runkle, 2000. "An experimental study of information and mixed-strategy play in the three-person matching-pennies game," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 15(2), pages 421-462.
    8. George Tsebelis, 1990. "Penalty has no Impact on Crime:," Rationality and Society, , vol. 2(3), pages 255-286, July.
    9. Heiko Rauhut, 2009. "Higher Punishment, Less Control?," Rationality and Society, , vol. 21(3), pages 359-392, August.
    10. Scholz, John T. & Wei, Feng Heng, 1986. "Regulatory Enforcement in a Federalist System," American Political Science Review, Cambridge University Press, vol. 80(4), pages 1249-1270, December.
    11. Lupia,Arthur & McCubbins,Mathew D., 1998. "The Democratic Dilemma," Cambridge Books, Cambridge University Press, number 9780521584487.
    12. Luciano Andreozzi, 2004. "Rewarding Policemen Increases Crime. Another Surprising Result from the Inspection Game," Public Choice, Springer, vol. 121(1), pages 69-82, October.
    13. Fandel, Günter & Trockel, Jan, 2011. "Optimal lot sizing in a non-cooperative material manager-controller game," International Journal of Production Economics, Elsevier, vol. 133(1), pages 256-261, September.
    14. Bawn, Kathleen, 1997. "Choosing Strategies to Control the Bureaucracy: Statutory Constraints, Oversight, and the Committee System," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(1), pages 101-126, April.
    15. Heiko Rauhut & Marcel Junker, 2009. "Punishment Deters Crime Because Humans Are Bounded in Their Strategic Decision-Making," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(3), pages 1-1.
    16. Andrew B. Whitford, 2008. "A Test of the Political Control of Bureaucracies Under Asymmetric Information," Rationality and Society, , vol. 20(4), pages 445-470, November.
    17. Sugato Dasgupta & Kenneth C. Williams, 1995. "Search Behavior Of Asymmetrically Informed Voters: An Experimental Study," Economics and Politics, Wiley Blackwell, vol. 7(1), pages 21-41, March.
    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. Heiko Rauhut & Marcel Junker, 2009. "Punishment Deters Crime Because Humans Are Bounded in Their Strategic Decision-Making," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(3), pages 1-1.
    2. Christine Horne & Heiko Rauhut, 2013. "Using laboratory experiments to study law and crime," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(3), pages 1639-1655, April.
    3. Heiko Rauhut, 2015. "Stronger inspection incentives, less crime? Further experimental evidence on inspection games," Rationality and Society, , vol. 27(4), pages 414-454, November.
    4. William Minozzi & Jonathan Woon, 2013. "Lying aversion, lobbying, and context in a strategic communication experiment," Journal of Theoretical Politics, , vol. 25(3), pages 309-337, July.
    5. Tim Friehe, 2008. "Correlated payoffs in the inspection game: some theory and an application to corruption," Public Choice, Springer, vol. 137(1), pages 127-143, October.
    6. Christine Horne & Heiko Rauhut, "undated". "Using Laboratory Experiments to Study Law and Crime," Working Papers CCSS-10-010, ETH Zurich, Chair of Systems Design.
    7. Minozzi, William & Woon, Jonathan, 2016. "Competition, preference uncertainty, and jamming: A strategic communication experiment," Games and Economic Behavior, Elsevier, vol. 96(C), pages 97-114.
    8. Heiko Rauhut, 2009. "Higher Punishment, Less Control?," Rationality and Society, , vol. 21(3), pages 359-392, August.
    9. David Glick & C Daniel Myers, 2015. "Learning from others: an experimental test of Brownian motion uncertainty models," Journal of Theoretical Politics, , vol. 27(4), pages 588-612, October.
    10. Michal Tóth & Roman Chytilek, 2018. "Fast, frugal and correct? An experimental study on the influence of time scarcity and quantity of information on the voter decision making process," Public Choice, Springer, vol. 177(1), pages 67-86, October.
    11. Woon, Jonathan & Kanthak, Kristin, 2019. "Elections, ability, and candidate honesty," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 735-753.
    12. Anders Gustafsson, 2019. "Busy doing nothing: why politicians implement inefficient policies," Constitutional Political Economy, Springer, vol. 30(3), pages 282-299, September.
    13. Menusch Khadjavi, 2018. "Deterrence works for criminals," European Journal of Law and Economics, Springer, vol. 46(1), pages 165-178, August.
    14. David Altman, 2002. "Prospects for E-Government in Latin America: Satisfaction With Democracy, Social Accountability, and Direct Democracy," International Review of Public Administration, Taylor & Francis Journals, vol. 7(2), pages 5-20, December.
    15. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    16. Antonio Cabrales & Michalis Drouvelis & Zeynep Gurguy & Indrajit Ray, 2017. "Transparency is Overrated: Communicating in a Coordination Game with Private Information," CESifo Working Paper Series 6781, CESifo.
    17. Donald Wittman, 2008. "Targeted political advertising and strategic behavior by uninformed voters," Economics of Governance, Springer, vol. 9(1), pages 87-100, January.
    18. John Patty & Roberto Weber, 2007. "Letting the good times roll: A theory of voter inference and experimental evidence," Public Choice, Springer, vol. 130(3), pages 293-310, March.
    19. James Tilley & Christopher Wlezien, 2008. "Does Political Information Matter? An Experimental Test Relating to Party Positions on Europe," Political Studies, Political Studies Association, vol. 56(1), pages 192-214, March.
    20. Matthijs Rooduijn & Brian Burgoon & Erika J van Elsas & Herman G van de Werfhorst, 2017. "Radical distinction: Support for radical left and radical right parties in Europe," European Union Politics, , vol. 18(4), pages 536-559, December.

    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:sae:ratsoc:v:29:y:2017:i:2:p:226-254. 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: SAGE Publications (email available below). General contact details of provider: .

    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.