Informational Lobbying and Pareto-Improving Agenda Constraint
Arnaud Dellis () and
Mandar Oak ()
Journal of Law, Economics, and Organization, 2019, vol. 35, issue 3, 579-618
Interest groups (IGs) lobby policymaker (PM) by offering verifiable, policy-relevant information. The PM is limited in (1) his ability to verify the information offered by the IGs (access constraint) and (2) the number of issues he can implement reform on (agenda constraint). We show that when there exists an access constraint but no agenda constraint, the equilibrium exhibits “overlobbying,” that is, an IG with unfavorable information may lobby hoping that, the PM, unable to verify the information, may take the costly act of lobbying as a signal of favorable information and therefore implement reform on its issue. We then show that the presence of an agenda constraint can improve information transmission by curbing overlobbying. We identify circumstances under which an agenda constraint improves the ex ante expected welfare of both the PM and of each IG, thereby generating a Pareto improvement.
JEL-codes: D72 D78 D83 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:jleorg:v:35:y:2019:i:3:p:579-618.
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Law, Economics, and Organization is currently edited by Pablo T. Spiller
More articles in Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().