Committees in legislatures: A property rights perspective

Without the imposition of some institutional structure, a legislature is a non-exclusive resource, and legislators will have a tendency to overuse the resource and reduce its productivity. The committee system is a method for granting property rights over the legislature's agenda by subdividing the agenda and assigning each committee rights over a portion of the agenda. Just as common grazing ground could be more productive if it were subdivided and assigned to individual owners, the legislature is more productive if access to the agenda is subdivided and assigned to committees.Ownership rights to committee assignments are allocated based on seniority because this makes the rights more secure and therefore more valuable to their owners. In the United States Congress, the seniority rule replaced a system in which assignments were made at the discretion of party leaders. In the former system, legislators needed to expend effort to retain their assignments, which diminished their ability to use their assignments productively. Because individuals can use resources more productively if they do not have to be concerned about protecting their ownership interest, the seniority system enables the legislature to be more productive in producing legislation.