The Political Control of Bureaucracies under Asymmetric Information

Abstract

We analyze a model of interest group influence where this influence arises from a group's ability to provide relevant information to political actors about regulatory performance. The model rests on three premises: (I) bureaucrats possess an informational advantage, vis-à-vis their political overseers, concerning policy relevant variables; (2) this informational advantage is potentially exploitable by the agency; and (3) politicians anticipate this exploitation and adapt to it in their design of agencies. We show that a major consequence of this anticipation and adaptation is service to organized interest groups.