@article{d524dca1646b4516917fa545d4ca6b34,
title = "Why principals tolerate biases of inaccurate agents",
abstract = "Some agents are more accurate than others in estimating the best policy. The more accurately an agent estimates a policy's effects, the more he will resist biases, such as bribes from a special interest. Thus, a special interest needs to pay a larger bribe to an accurate agent than to an inaccurate agent. The accurate agent who is biased will then more likely cause harm than does an inaccurate agent who favors the special interest. Therefore, the principal may gain more from controlling biases of an accurate agent than of an inaccurate one. Thus, high ability of public officials may be associated with little corruption.",
keywords = "bureaucracy, principal-agent problem, special interests",
author = "Kimiko Terai and Amihai Glazer",
note = "Funding Information: Ministry of Education, Culture, Sports, Science, and Technology, Japan, Grant/ Award Number: Grants-in-Aid for Scientific Research (A): 24243042, Grants-in-Aid for Scientific Research (A): 15H01952, Grants-in-Aid for Scientific Research (B): 26285059, Grants-in-Aid for Scientific Research (B): 26285065, Grants-in-Aid for Scientific Research (C): 26380370, Grants-in-Aid for Scientific Research (C): 17K03772; Program in Corporate Welfare Studies Funding Information: We are indebted to Lucy Liu and to Haley Rovner for superb research assistance. Financial support was provided by the Program in Corporate Welfare Studies, the Grants‐in‐Aid for Scientific Research (A) (24243042, 15H01952), the Grants‐in‐Aid for Scientific Research (B) (26285059, 26285065), and the Grants‐in‐Aid for Scientific Research (C) (26380370, 17K03772) from the Ministry of Education, Culture, Sports, Science, and Technology, Japan. Publisher Copyright: {\textcopyright} 2018 John Wiley & Sons Ltd",
year = "2019",
month = mar,
doi = "10.1111/ecpo.12119",
language = "English",
volume = "31",
pages = "97--111",
journal = "Economics and Politics",
issn = "0954-1985",
publisher = "Wiley-Blackwell",
number = "1",
}