Parties place more weight on social welfare relative to campaign contributions as the fraction of knowledgeable voters increases, as campaign spending on attracting impressionable voters becomes less effective, and as the preferences of the knowledgeable voters become less dispersed in regard to the issues on which the parties' positions are fixed. Finally, we find that the party whose fixed positions are more popular among voters is more likely than its rival to cater to the special interests. More recently, we have been studying how interest groups might use their specialized expertise as a tool to influence policy. An interest group is likely to know quite a bit about its particular areas of interest. For example, a group representing the firms in an industry is likely to be well informed about industry conditions, while one representing environmentalists may know a great deal about ecological sciences.
Interest groups are a potential source of information for voters and policymakers alike.
The groups can advise the voters about the wisdom of different candidates' positions and can advise the policymakers about what policy approaches would be desirable. But the recipients of the advice must be wary because the group has a stake in the outcome. Our research focuses on what types of statements and actions by interest groups will be credible and how these actions can affect the policy outcomes. In one paper, we study the issuance of endorsements by special interest groups. An endorsement indicates which of the candidates has a position that better serves the common interests of the group members.