330 CHAPTER 11|THE BUREAUCRACY
THE PROBLEM OF CONTROL
The diffi culty that elected offi cials and their staff face when trying to interpret
or infl uence bureaucratic actions is the problem of control.^12 A classic example
is the principal–agent game, which describes an interaction that involves an
individual or group (an “agent”) acting on behalf of another (the “principal”). In
the federal government, for example, the president and Congress are principals,
and bureaucrats are agents. An agent may prefer outcomes that the principal does
not like. Moreover, because the agent is an expert at the task he has been given, he
has private information inaccessible to the principal. The problem for the prin-
cipal, then, is this: giving the agent very specifi c orders prevents the agent from
acting based on his expertise; but if the principal gives the agent the freedom to
make decisions based on expertise, the principal has less control over the agent’s
actions.
Suppose Congress and the president direct the FDA to shorten its drug
approval process. FDA offi cials might have mandated a lengthy process based on
their expert assessment of the best way to screen out harmful drugs. By giving
orders that supersede the FDA offi cials’ screening process, elected offi cials would
be sacrifi cing the valuable bureaucratic expertise behind the policy and risking
the hasty approval of unsafe drugs. But if Congress and the president allow FDA
bureaucrats to devise their own procedures and regulations, the FDA might use
this freedom to pursue goals that have nothing to do with drug safety. For example,Source: Pew Research Center, “The Generation Gap and the 2012 Elections,” Pew Research Center, November 1,
2011, http://www.people-press.org/fi les/legacy-pdf/11-3-11%20Generations%20Release.pdf (accessed 9/22/12).HOW AMERICANS VIEW THE FEDERAL BUREAUCRACY
Many Americans believe the bureaucracy is wasteful and ineffi cient. Note, however,
that the magnitude of negative feelings varies over time. Consider the time frame
represented on the graph. What happened during these years that might explain the
changes in citizens’ opinions about the government?FIGURE » 11.1
19871020304050607080%1992 1997Percentage agreeing“When something is run by the government,
it is usually inefficient and wasteful.”2002 2007 2011problem of control A diffi culty
faced by elected offi cials in ensuring
that when bureaucrats implement
policies, they follow these offi cials’
intentions but still have enough
discretion to use their expertise.
principal–agent game The
interaction between a principal
(such as the president or Congress),
who needs something done, and an
agent (such as a bureaucrat), who
is responsible for carrying out the
principal’s orders.