New research examines agency markups in congressional political campaigns. By analyzing unprecedented revenue-cost data of intermediary firms, this study uncovers substantial price differences across candidate types.

Data & Methods: The analysis uses newly compiled financial records for advertising intermediaries working on congressional campaigns from 2015 to 2020. This dataset tracks markups charged by these firms.

Key Findings: Markups are higher in three distinct scenarios:

* For inexperienced candidates compared to experienced ones

* For PAC clients versus campaign clients

* Significantly more pronounced for Republican campaigns than Democratic ones

These findings suggest a potential connection between political ideology and consulting fees. The study argues that firms charging Republicans higher markups may be strategically attempting to attract like-minded consultants.

Why It Matters: This research reveals how the structure of political advertising intermediation might influence campaign strategies. Higher markups could signal not just business practices but also ways campaigns respond differently to these financial incentives, potentially affecting overall electoral competition.