Elhanan Helpman (Harvard University, Tel Aviv University and CIAR) Torsten Persson (Institute for International Economic Studies and London School of Economics)
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We examine the effects of the interaction between lobbying and legislative bargaining on policy formation. Two systems are considered: a US-style congressional system and a European-style parliamentary system. First, we show that the policies generated are not intermediate between policies that would result from pure lobbying or from pure legislative bargaining. Second, we show that in congressional systems the resulting policies are strongly skewed in favor of the agenda-setter. In parliamentary systems they are skewed in favor of the coalition, but within the coalition there are many possible outcomes (there are multiple equilibria) with the agenda-setter having no particular advantage. Third, we show that equilibrium contributions are very small, despite the fact that lobbying has a marked effect on policies.
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Grossman, Gene M & Helpman, Elhanan, 1994.
"Protection for Sale,"
American Economic Review,
American Economic Association, vol. 84(4), pages 833-50, September.
[Downloadable!] (restricted)
Other versions:
Gene M. Grossman & Elhanan Helpman, 1992.
"Protection For Sale,"
NBER Working Papers
4149, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
McKelvey, Richard D. & Riezman, Raymond., 1990.
"Seniority in Legislatures,"
Working Papers
725, California Institute of Technology, Division of the Humanities and Social Sciences.
[Downloadable!]
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Leonardo Felli & Antonio Merlo, .
"Endogenous Lobbying,"
CARESS Working Papres
00-03, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
[Downloadable!]
Other versions:
Leonardo Felli & Antonio Merlo, 2001.
"Endogenous Lobbying,"
PIER Working Paper Archive
04-043, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Oct 2004.
[Downloadable!]
Felli, L. & Merlo, A., 2000.
"Endogenous Lobbying,"
Working Papers
00-04, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!]
Morten Bennedsen & Sven E. Feldmann, 2000.
"Lobbying Legislatures,"
CIE Discussion Papers
2000-04, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
[Downloadable!]
Other versions:
Bennedsen, Morten & Feldmann, Sven E., 2000.
"Lobbying Legislatures,"
Working Papers
07-2000, Copenhagen Business School, Department of Economics.
[Downloadable!]