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Heterogeneous groups and rent-seeking for public goods

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  • Cheikbossian, Guillaume

Abstract

We present a model of endogenous public good provision and group rent-seeking influence. Specifically, two groups with different preferences over public policy and different sizes engage in rent-seeking or lobbying activities to influence policymaking in their preferred direction. When there is within-group cooperation in lobbying, both groups neutralize each other in the political process. Without within-group cooperation, the free-rider problem in lobbying makes the smaller group politically influent. In both cases, the total level of rent-seeking activities is shown to be increasing in taste heterogeneity but decreasing in group size asymmetry.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 24 (2008)
Issue (Month): 1 (March)
Pages: 133-150

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Handle: RePEc:eee:poleco:v:24:y:2008:i:1:p:133-150

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Web page: http://www.elsevier.com/locate/inca/505544

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  16. Cheikbossian, G., 2004. "Lobbying and Rent-Seeking for Public Goods in a Fiscally Centralized System," Cahiers du LASER (LASER Working Papers), LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1 2004.12, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
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Citations

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Cited by:
  1. Angelopoulos, Konstantinos & Philippopoulos, Apostolis & Vassilatos, Vanghelis, 2009. "The social cost of rent seeking in Europe," European Journal of Political Economy, Elsevier, vol. 25(3), pages 280-299, September.
  2. Sheremeta, Roman, 2009. "Essays on Experimental Investigation of Lottery Contests," MPRA Paper 49888, University Library of Munich, Germany.
  3. Gil S. Epstein & Yosef Mealem, 2011. "Cooperation and Effort in Group Contests," Working Papers 2011-28, Bar-Ilan University, Department of Economics.
  4. Kräkel, Matthias, 2009. "Competitive Careers as a Way to Mediocracy," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 286, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  5. Rustam Jamilov, 2013. "Optimal Resource Rent," William Davidson Institute Working Papers Series wp1046, William Davidson Institute at the University of Michigan.
  6. Dan Kovenock J. & Brian Roberson, 2009. "Non-Partisan 'Get-Out-the-Vote' Efforts and Policy Outcomes," CESifo Working Paper Series 2815, CESifo Group Munich.
  7. Heinrich Ursprung, 2012. "The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation," Public Choice, Springer, vol. 153(1), pages 149-161, October.
  8. Van Long, Ngo, 2013. "The theory of contests: A unified model and review of the literature," European Journal of Political Economy, Elsevier, vol. 32(C), pages 161-181.
  9. Emma Aisbett & Carol McAusland, 2011. "Firm Characteristics and Influence on Government Rule-Making: theory and evidence," CEPR Discussion Papers 649, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  10. Toshihiro Ihori & C. Yang, 2012. "Laffer paradox, Leviathan, and political contest," Public Choice, Springer, vol. 151(1), pages 137-148, April.
  11. Toshihiro Ihori & C.C. Yang, 2010. "Laffer paradox, Leviathan, and Political Contest," CIRJE F-Series CIRJE-F-769, CIRJE, Faculty of Economics, University of Tokyo.
  12. Elie Appelbaum & Eliakim Katz, 1986. "Transfer seeking and avoidance: On the full social costs of rent seeking," Public Choice, Springer, vol. 48(2), pages 175-181, January.
  13. Oto-Peralías, Daniel & Romero-Ávila, Diego & Usabiaga, Carlos, 2013. "Does fiscal decentralization mitigate the adverse effects of corruption on public deficits?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 205-231.
  14. Hattori, Keisuke, 2011. "A Note on Within-group Cooperation and Between-group Interaction in the Private Provision of Public Goods," MPRA Paper 32045, University Library of Munich, Germany.
  15. Oskar Nupia, 2011. "Rent-seeking For Public Goods: Group´s Size and Wealth Heterogeneity," DOCUMENTOS CEDE 008914, UNIVERSIDAD DE LOS ANDES-CEDE.

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