This paper analyzes a two-period model of interest group competition between two groups to affect the policy outcome. The paper characterizes the subgame perfect equilibrium and considers the welfare implications of the model. The subgame perfect equilibrium to this game is allocatively efficient if and only if the initial equilibrium is allocatively efficient and interest groups are equally adept at producing political pressure. When rent seeking is constitutionally protected, the notion of rent-seeking constrained efficiency is defined as the cooperative solution to the rent-seeking game. It is shown that a rent-seeking constrained efficient equilibrium is attainable by forcing winners in political competition to fully compensate losers. Copyright 2000 by Kluwer Academic Publishers
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Publisher Info
Article provided by Springer in its journal Public Choice.
Volume (Year): 102 (2000) Issue (Month): 3-4 (March) Pages: 313-39 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF