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Selective Information Provision and Special Interest Influence: The Case of Trade Policy

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Author Info
Carl-Johan Belfrage (Department of Economics, Lund University)

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Abstract

A tool used by special interests to influence policies in their favor but rarely treated in the economic literature is examined. Through contributions to the pool of available information, a bias in public perceptions of policy consequences may be created and policymaking accordingly affected. The results in terms of equilibrium protection levels add to but do not overthrow those of traditional analyses involving contributions to campaign funds.The analysis also shows that as long as some influence over perceived policy consequences can be generated by special interest groups, the political power they can wield by means of campaign contributions is much stronger (and more likely to be extensively used) than that predicted by analyses focused exclusively on campaign contributions. Restrictions on one means of special interest influence can therefore yield significant reductions in both protection and the use of resources for political influence purposes.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Contributions to Economic Analysis & Policy.

Volume (Year): 2 (2003)
Issue (Month): 1 ()
Pages: 1096-1096
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Handle: RePEc:bep:eapcon:v:2:y:2003:i:1:p:1096-1096

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Related research
Keywords: Special interest groups Biased information Campaign contributions Trade policy

Find related papers by JEL classification:
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation

References listed on IDEAS
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  1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
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  2. Pinelopi Koujianou Goldberg & Giovanni Maggi, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December. [Downloadable!] (restricted)
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  3. Stephen Coate, 2001. "Political Competition with Campaign Contributions and Informative Advertising," NBER Working Papers 8693, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Paul Milgrom & John Roberts, 1986. "Relying on the Information of Interested Parties," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 18-32, Spring. [Downloadable!] (restricted)
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  5. Ursprung, Tobias, 1994. " The Use and Effect of Political Propaganda in Democracies," Public Choice, Springer, vol. 78(3-4), pages 259-82, March.
  6. Congleton, Roger D., 1991. "Ideological conviction and persuasion in the rent-seeking society," Journal of Public Economics, Elsevier, vol. 44(1), pages 65-86, February. [Downloadable!] (restricted)
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This page was last updated on 2008-7-1.

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