Legislative Committees as Information Intermediaries: A Unified Theory of Committee Selection and Amendment Rules

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Business Economics and Public Policy Papers
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informational theories of legislature
committees
lobbying
procedural rules
Behavioral Economics
Economics
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Ambrus, Attila
Azevedo, Eduardo
Kamada, Yuichiro
Takagi, Yuki
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This paper considers a model of legislative decision-making, in which information must be collected from a strategic lobbyist. The legislature appoints a committee to communicate with the lobbyist and propose a bill, and determines whether the proposal is processed under open or closed rule. Consistent with empirical evidence, it can be optimal for the legislature to appoint a biased committee and, depending on the lobbyist's bias, both open and closed rule are used in equilibrium. For small lobbyist bias, it is optimal to choose closed rule and a committee whose interests are perfectly aligned with the lobbyist's. For intermediate lobbyist bias, closed rule remains optimal with a committee whose preferences lie between those of the legislature and those of the lobbyist. For large lobbyist bias, open rule and a committee biased against the lobbyist become optimal.

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2013-10-01
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Journal of Economic Behavior & Organization
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