2015
DOI: 10.1057/iga.2015.4
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Agency problems and interest representation: An empirical analysis of the costs of lobbying

Abstract: Most recent work on the politics of interest representation assumes that lobbyists represent their clients' interests with fidelity. We test the validity of this assumption. Relying on a principal-agent framework developed by Stephenson and Jackson, Kersh and Lowery and Marchetti, we first discuss the nature of agency problems in lobbying and the utility of several potential solutions for those problems. We next develop and test two sets of hypotheses on how agency problems might influence one form of lobbying… Show more

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Cited by 11 publications
(4 citation statements)
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“…For instance, since interests often function as principals who delegate political activity to their lobbyists and policy advocates as their agents, the lobbying activity we ultimately observe reflects how lobbyists and policy advocates resolve discrepancies between the preferences of themselves and their employers. However, with the exception of a few formal models and qualitative studies (Drutman 2015; Hirsch et al n.d.; Kersh 2002), we have little empirical insight on how interests and lobbyists and policy advocates navigate this principal‐agent problem (but see Holyoke 2017; Schiff, Seufer, Whitesell and Lowery 2015), and bringing lobbyists themselves more prominently into our research can help shed light on this dynamic. Again, while recent studies on the revolving door have brought attention to the importance of lobbyists’ previous government experience (e.g., LaPira and Thomas 2017; McCrain 2018; Vidal, Draca, and Fons‐Rosen 2012), we otherwise have scant knowledge of the characteristics of the persons who populate the lobbying community and how those characteristics might inform their advocacy behavior such as their partisanship and ideology (but see Hirsch et al n.d.), professional experience, substantive expertise, gender, and race.…”
Section: Discussionmentioning
confidence: 99%
“…For instance, since interests often function as principals who delegate political activity to their lobbyists and policy advocates as their agents, the lobbying activity we ultimately observe reflects how lobbyists and policy advocates resolve discrepancies between the preferences of themselves and their employers. However, with the exception of a few formal models and qualitative studies (Drutman 2015; Hirsch et al n.d.; Kersh 2002), we have little empirical insight on how interests and lobbyists and policy advocates navigate this principal‐agent problem (but see Holyoke 2017; Schiff, Seufer, Whitesell and Lowery 2015), and bringing lobbyists themselves more prominently into our research can help shed light on this dynamic. Again, while recent studies on the revolving door have brought attention to the importance of lobbyists’ previous government experience (e.g., LaPira and Thomas 2017; McCrain 2018; Vidal, Draca, and Fons‐Rosen 2012), we otherwise have scant knowledge of the characteristics of the persons who populate the lobbying community and how those characteristics might inform their advocacy behavior such as their partisanship and ideology (but see Hirsch et al n.d.), professional experience, substantive expertise, gender, and race.…”
Section: Discussionmentioning
confidence: 99%
“…Participant observation techniques have been very successfully used with respect to lobbyists (Benoit, 2007;Birnbaum, 1992;Kersh, 2002;McFarland, 1984;McHale, 2004;Schlesinger et al, 2001). And we do gain useful insights into lobbyists in the developing principal-agent literature (Lowery and Marchetti, 2012;Schiff et al, 2015; Stephenson and Jackson, 2010). However, it is true that the academic literature on lobbyists is less extensive and much less systematic than that on lobbying.…”
Section: Much Of the Work Citingmentioning
confidence: 96%
“…After revelations that lobbyist Jack Abramoff ripped-off clients to advance his personal interests (e.g., Lowery and Marchetti 2012), scholars grew concerned that the rate at which legislators and staff were leaving Congress through the “revolving door” to exploit their connections as lobbyists for profit might lead to more of the same (LaPira and Thomas 2017). Researchers also found evidence of lobbyists over-charging their corporate clients (Schiff et al 2015) or advocating bill positions at odds with member preferences (at least when measured with ordinal scales in Holyoke 2011). Unethical lobbyists might be getting away with this behavior, scholars feared, because of severe information asymmetry in their principal-agent relationships with members or clients.…”
Section: Lobbying and Representationmentioning
confidence: 99%