Optimal duplication of effort in advocacy systems

The paper focuses on the creation of information for decision-making when agents’ effort is non-observable and rewards are indirect, that is, only based on the final decision. Following Dewatripont and Tirole [Dewatripont, M., Tirole, J., 1999. Advocates. Journal of Political Economy 107, 1–39], the paper shows that the creation of advocates of special interests, as opposed to non-partisans, generates an efficient mechanism of mutual monitoring that reduces the scope for manipulation. Such monitoring is preferable over imposing penalties for detected manipulation; it is also preferable to creating an agency that monitors the non-partisan agent. Applications to transfer price policies and comparative judicial systems are considered.