A Theory of Cabinet-Making: The Politics of Inclusion, Exclusion, and Information
نویسنده
چکیده
I describe a model of strategic communication within groups in policy-making situations with decentralized policy-making authority. I show that, in a cheap-talk environment, inclusion and exclusion of agents can affect the credibility of signaling between agents and, accordingly, both the quality of individual policy decisions and social welfare. Somewhat surprisingly, the inclusion of agents can aid information aggregation and social welfare even when the added agents do not themselves communicate truthfully. Analogously, the results suggest an informational, social-welfare-based rationale for excluding agents not only from observing policyrelevant communication but also from observing the product of the communication precisely because the excluded agents possess decision-making authority. The results are applied to institutional questions regarding voluntary association among decision-makers and the propriety of allowing policy-makers to choose their own advisors. ∗Department of Political Science and Center for New Institutional Social Sciences, Washington University in Saint Louis. Email: [email protected]. This research has benefited from the comments and suggestions of Justin Fox, Sean Gailmard, Francesco Squintani, and audience members at the NYU-LSE conference on political economy. In addition, I especially thank Maggie Penn for multiple incredibly helpful discussions and pointing out an error in an earlier draft. Of course, I am solely responsible for any and all remaining errors.
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