Lobbying and asymmetric information

Informational lobbying — the use by interest groups of their (alleged) expertise or private information on matters of importance for policymakers in an attempt to persuade them to implement particular policies — is often regarded as an important means of influence. This paper analyzes this phenomenon in a game setting. On the one hand, the interest group is assumed to have private information which is relevant to the policymaker, whilst, on the other hand, the policymaker is assumed to be fully aware of the strategic incentives of the interest group to (mis)report or conceal its private information. It is shown that in a setting of partially conflicting interests a rationale for informational lobbying can only exist if messages bear a cost to the interest group and if the group's preferences carry information in the ‘right direction’. Furthermore, it is shown that it is not the content of the message as such, but rather the characteristics of the interest group that induces potential changes in the policymaker's behavior. In addition, the model reveals some interesting results on the relation between, on the one hand, the occurrence and impact of lobbying and, on the other hand, the cost of lobbying, the stake which an interest group has in persuading the policymaker, the similarity between the policymaker's and the group's preferences, and the initial beliefs of the policymaker. Moreover, we relate the results to some empirical findings on lobbying. qu]Much of the pressure placed upon government and its agencies takes the form of freely provided “objective” studies showing the important outcomes to be expected from the enactment of particular policies (Bartlett, 1973: 133, his quotation marks). qu]The analysis here is vague. What is needed is an equilibrium model in which lobbying activities have influence. Incomplete information ought to be the key to building such a model that would explain why lobbying occurs (information, collusion with decision makers, and so on) and whether lobbying expenses are socially wasteful. (Tirole, 1989: Ch. 1.3, p. 77, Rentseeking behavior).     

The impact of plurilateral trade agreements on developing countries – to participate or not to participate?

In the wake of the impasse in the Doha Development Round of multilateral trade talks, sector-specific plurilateral trade agreements (PTAs) have been gaining traction. However, PTAs mostly appeal to developed countries, with the uptake among developing countries (including least-developed countries) being very limited. This article investigates the factors contributing to such a phenomenon, whether there is indeed merit in developing countries playing a more active role in PTAs and how they might be encouraged to do so. Both qualitative and quantitative analyses were conducted with specific attention being given to the effects, on a selection of developing countries, of participation in four PTAs: the Trade in Services Agreement, the Government Procurement Agreement, the Environmental Goods Agreement and the Information Technology Agreement II. Among the findings was that although, according to the qualitative analysis, policymakers are generally disinterested in the four PTAs because they are not aligned to the countries’ economic interests or they threaten policy space, the quantitative analysis revealed that gains could often be made from more active participation in these agreements. This clearly points to a research gap and highlights the need for more in-depth analysis of the potential of PTAs in the developing world.     

Justice and Feelings: Toward a New Era in Justice Research

In this special issue, the relationship between feelings and justice and its consequences are highlighted. Five articles discuss the role that affect, feelings, and emotions play in justice processes across a variety of social settings. In the present introductory article, the position of past and present justice research in relationship to these topics is briefly reviewed. In addition, reasons are outlined to show why a focus on these issues may be pivotal for a better understanding of social justice and how this may pave the way for a new, more process-oriented era in social justice research, focusing more on “hot” cognitive aspects as they pertain to social justice concerns.     

Implementing randomized experiments in criminal justice settings: An evaluation of multi-systemic therapy in the Netherlands

This paper addresses several issues that we encountered when implementing a randomized experiment to evaluate a promising intervention for serious juvenile delinquents, multi-systemic therapy (MST). The issues overlap with issues others experienced when trying to conduct randomized experiments in clinical practice, but are complicated because MST takes place in a legal context. The complex juvenile justice system makes it difficult to come up with a simple system of randomization. Problems encountered are the complexity of the referral process in this type of intervention, legal issues and the ethical concerns raised by clinicians. Our experiences might be useful to others planning to carry out a randomized efficacy study within the juvenile justice system. Firstly, other researchers might feel supported if they realize that others experience similar problems, and, secondly, we provide some concrete suggestions concerning the following: selecting the procedures and determining the moment of randomization, dealing with and overcoming the resistance of institutions involved, maintaining the cooperation of both the institution and the sample, and keeping turnover of research staff to a minimum.     

Reluctant terrorists? Transcaucasian social-cemocracy, 1901 – 1909

This article discusses the development of Transcaucasian social-democratic terrorism from 1901 to 1909. For two reasons the ‘psychohistorical’ model emphasising the subjective and irrational aspects of terrorism has only limited value for the Transcaucasian case. First, the significance of the contextual factor is powerfully underscored by the phenomenon of workers' ‘economic terrorism’. It was not uncommon even, for workers to blackmail reluctant party organisations into supporting the killing of their enemies. Secondly, the social democrats were not driven by irrational urges but followed a rationally motivated and selective terrorist strategy. They attempted to limit or prevent workers' terrorism from below, the ‘anarchist’ potential of which they considered a threat to the organised mass struggle. They set their hopes on a division of labour, with a militant but mostly peaceful workers' movement and terrorism as the prerogative of the party.     

Lipitor battle in the Netherlands--District Court invalidates Warner-Lambert's EP '281 and holds EP '633 infringed

In the continuing Lipitor (atorvastatin) battle between theIndian company Ranbaxy and Pfizer/Warner-Lambert, the DistrictCourt of The Hague held that Ranbaxy's generic atorvastatinfalls within the scope of protection of EP '633, the main patentcovering atorvastatin, and invalidated another atorvastatinpatent, EP '281.     

The Moral Superiority Effect: Self Versus Other Differences in Satisfaction with Being Overpaid

This paper focuses on how people think about their own and other's reactions to being overpaid. Two experiments investigate the discrepancy between people's own satisfaction and their perception of other's satisfaction with overpayment. The results of both experiments support our hypothesis that people think others are more satisfied with being overpaid than they are themselves. Our results are consistent with the idea that people think others are more influenced by egoism-based considerations whereas they themselves are more influenced by considerations of right and wrong. In other words, people show a moral superiority effect. In the general discussion, we argue why it is less likely to find moral superiority effects on people's reactions to being equally paid and underpaid, and we relate our findings to the literature of self-serving biases.