Optimal Duplication of Effort in Advocacy Systems
The paper focuses on the creation of information for decision-making when agents' effort is non observable and rewards are indirect, that is, only based on the final decision. Following Dewatripont and Tirole (1999), the paper shows that the creation of advocates of special interests, as opposed to non-partisans, generates an efficient mechanism of mutual monitoring that reduces the scope for manipulation. Such monitoring is preferable over imposing penalties for detected manipulation; it is also preferable to creating an agency that monitors the non partisan agent. Applications to transfer price policies and comparative judicial systems are considered.
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- Hyun Song Shin, 1998.
"Adversarial and Inquisitorial Procedures in Arbitration,"
RAND Journal of Economics,
The RAND Corporation, vol. 29(2), pages 378-405, Summer.
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- Maria Rosaria Marino & Chiara Rapallini, 2003. "La composizione familiare e lï¿½imposta sul reddito delle persone fisiche: unï¿½analisi degli effetti redistributivi e alcune considerazioni sul benessere sociale," Temi di discussione (Economic working papers) 477, Bank of Italy, Economic Research and International Relations Area.
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- Laffont, Jean-Jacques & Tirole, Jean, 1990. "The Politics of Government Decision Making: Regulatory Institutions," Journal of Law, Economics and Organization, Oxford University Press, vol. 6(1), pages 1-31, Spring.
- Paolo Finaldi Russo & Luigi Leva, 2004. "Il debito commerciale in Italia: quanto contano le motivazioni finanziarie?," Temi di discussione (Economic working papers) 496, Bank of Italy, Economic Research and International Relations Area.
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