Information, Acquisition, Political Game and the Delegation Authority.

In this paper, we investigate the problem of decentralizing public good decision-making from a political and informational perspective. First, we explain why different levels of jurisdiction, central decision-maker and local ones, are likely to take their decisions under different informational structures by deriving the incentives of both potential decision-makers to look for the relevant pieces of information. By endogenizing the informational structures, we identify a trade-off in the choice between centralization and decentralization. It amounts to choosing between a costly information technology allowing to take optimal decisions and a free information technology subject to several distortionary influences.