1. Do More Powerful Interest Groups Have a Disproportionate Influence on Policy?
- Author
-
Zara Sharif and Otto H. Swank
- Subjects
TheoryofComputation_MISCELLANEOUS ,Economics and Econometrics ,Public economics ,jel:D82 ,05 social sciences ,jel:D72 ,jel:D78 ,Relative strength ,010502 geochemistry & geophysics ,01 natural sciences ,Access to information ,Incentive ,jel:H39 ,information collection, communication, interest groups, decision-making ,0502 economics and business ,Business ,050207 economics ,0105 earth and related environmental sciences ,Public finance - Abstract
textabstractDecisions-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.
- Published
- 2019