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Policymaking with Multiple Agencies

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  • Peter Bils

Abstract

Authority over related policy issues is often dispersed among multiple government agencies. In this article, I study when Congress should delegate to multiple agencies, and how shared regulatory space complicates agency decision making. To do so, I develop a formal model of decentralized policymaking with two agencies that incorporates information acquisition and information sharing, delineating situations where legislators should and should not prefer multiple agencies. Greater divergence between the agencies' ideal points distorts information sharing and policy choices, but it may increase the amount of information acquisition. Congress achieves better policy outcomes by delegating authority to both agencies if the agencies have strong policy disagreements. If the agencies have similar policy preferences, however, then Congress may want to consolidate authority within one agency because this approach mitigates free‐riding and takes advantage of returns to scale.

Suggested Citation

  • Peter Bils, 2020. "Policymaking with Multiple Agencies," American Journal of Political Science, John Wiley & Sons, vol. 64(3), pages 634-648, July.
    • Handle: RePEc:wly:amposc:v:64:y:2020:i:3:p:634-648
    DOI: 10.1111/ajps.12474
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    References listed on IDEAS

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    Cited by:

    1. Ba, Cuimin & Gindin, Alice, 2023. "A multi-agent model of misspecified learning with overconfidence," Games and Economic Behavior, Elsevier, vol. 142(C), pages 315-338.

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