Federal advisory commissions in an economic model of representative democracy

Abstract

This paper developed an economic theory of representative democracy to explain the use of outside advisory commissions in collective decisionmaking. In this model, legislators maximize net political support expected from supplying legislation to consumer-voters and producer-voters. Outside advisory bodies were viewed as vehicles for enhancing net political support, particularly that received from special-interest groups. By helping special-interest groups overcome the free-rider problem, advisory bodies increased the ability of special interests to provide political support in return for favorable legislation. And by providing a mechanism for safeguarding favorable legislation, advisory bodies increased the durability, and hence the value, of this legislation to the favored special interest. Thus, advisory bodies increased the ability and the willingness of special-interests to provide political support in return for favorable legislation.