Multiple Principals, Multiple Signals: A Signaling Approach to Principal‐Agent Relations

Abstract

This study suggests a key element of the principal‐agent relationship involves communication between potential principals and their agents. We suggest communications often resemble a signaling process in which potential principals indicate their interest in policy matters through multiple venues. This study models changes in the levels of rulemaking activity by the Bureau of Indian Affairs and the Federal Energy Regulatory Commission as a function of increased salience in public, congressional and executive venues.

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