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Delegation and Accountability in Parliamentary Democracies$
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Kaare Strøm, Wolfgang C. Müller, and Torbjörn Bergman

Print publication date: 2003

Print ISBN-13: 9780198297840

Published to Oxford Scholarship Online: January 2005

DOI: 10.1093/019829784X.001.0001

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Delegation and its Peril s

Delegation and its Peril s

(p.33) 2 Delegation and its Perils
Delegation and Accountability in Parliamentary Democracies

Arthur Lupia

Oxford University Press

Presents a formal theoretical framework that clarifies when principals can, and cannot, use delegation to accomplish desired ends. It shows the conditions (having to do with preferences and information) under which agents will act in their principals’ interests and how political institutions can alleviate the perils of delegation. Finally, it discusses the implications of its theoretical insights on chains of political delegation.

Keywords:   adverse selection, agency loss, contract design, ex ante vs ex post controls, hidden action, information, interests, moral hazard, principal–agent theory, screening, selection

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