Lobbying under political uncertainty

Abstract This paper considers a model of lobbying described as a common agency game; it departs from the current literature by assuming that the special interest groups are not a priori organized or unorganized and that the type of the politician is not common knowledge. We characterize equilibria when the choice set of the politician consists of two policies; we discuss the conditions leading to efficiency and the characteristics of the groups explaining their relative success in the process of influence. We also offer some results for the general case, including disjoint necessary and sufficient conditions for the equilibria to be efficient.

[1]  K. Gawande Stigler–Olson lobbying behavior in protectionist industries: Evidence from the lobbying power function , 1998 .

[2]  I. Glicksberg A FURTHER GENERALIZATION OF THE KAKUTANI FIXED POINT THEOREM, WITH APPLICATION TO NASH EQUILIBRIUM POINTS , 1952 .

[3]  Scott C. Bradford Protection and jobs: explaining the structure of trade barriers across industries , 2003 .

[4]  Giovanni Maggi,et al.  Protection for Sale: An Empirical Investigation , 1997 .

[5]  David Martimort Multi-principaux avec anti-selection , 1992 .

[6]  Devashish Mitra,et al.  Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination , 1999 .

[7]  M. Olson,et al.  The Logic of Collective Action , 1965 .

[8]  K. Gawande US non-tariff barriers as privately provided public goods , 1997 .

[9]  George J. Stigler,et al.  Free Riders and Collective Action: An Appendix to Theories of Economic Regulation , 1974 .

[10]  K. Gawande,et al.  Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection , 2000, Review of Economics and Statistics.

[11]  W. Brock,et al.  The Economics of Special Interest Politics: The Case of the Tariff , 1978 .

[12]  Elhanan Helpman,et al.  Protection for Sale , 1992 .

[13]  Elhanan Helpman,et al.  The Politics of Free Trade Agreements , 1993 .

[14]  Didier Laussel,et al.  Conflict and Cooperation: The Structure of Equilibrium Payoffs in Common Agency , 2001, J. Econ. Theory.

[15]  G. Tabellini,et al.  Does centralization increase the size of government , 1994 .

[16]  T. Persson Economic Policy and Special Interest Politics , 1998 .

[17]  W. Hansen The International Trade Commission and the Politics of Protectionism , 1990, American Political Science Review.

[18]  M. Whinston,et al.  Menu Auctions, Resource Allocation, and Economic Influence , 1986 .

[19]  Business Tax Lobbying , 2000 .

[20]  J. R. Walters Conflict and Cooperation , 2018, The Essence of Politics.

[21]  Avinash Dixit,et al.  Special-Interest Lobbying and Endogenous Commodity Taxation , 1996 .

[22]  Toke S. Aidt Political internalization of economic externalities and environmental policy , 1998 .

[23]  M. Rama,et al.  Lobbying by capital and labor over trade and labor market policies , 1998 .

[24]  Douglas Nelson,et al.  The political economy of administered protection , 1982 .