Show Them Your Teeth First! A Game-Theoretic Analysis of Lobbying and Pressure
AbstractThis paper investigates the choice of an interest group between lobbying ("words") and pressure ("actions") in order to influence a policymaker. Both lobbying and pressure are modeled as strategic means of transmitting information that is relevant to the policymaker. However, only pressure is directly costly to the policymaker. The interaction between the interest group and the policymaker is framed as a repeated signaling game. In equilibrium pressure--in contrast to lobbying--only occurs when the interest group's reputation is sufficiently low, and always improves its reputation. It is shown that (repeated) lobbying cannot completely substitute for pressure, and that the interest group may be forced to sustain its reputation through lobbying. We conclude that pressure is typically used to build up a reputation, lobbying to maintain a reputation. Copyright 2000 by Kluwer Academic Publishers
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 104 (2000)
Issue (Month): 1-2 (July)
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Web page: http://www.springerlink.com/link.asp?id=100332
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- Matthias Dahm & Nicolás Porteiro, 2008.
"Informational lobbying under the shadow of political pressure,"
Social Choice and Welfare,
Springer, vol. 30(4), pages 531-559, May.
- Matthias Dahm & Nicolas Porteiro, 2005. "Informational Lobbying under the Shadow of Political Pressure," Discussion Papers 1409, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthias Dahm & Nicolás Porteiro, 2006. "Informational Lobbying under the Shadow of Political Pressure," Working Papers 06.14, Universidad Pablo de Olavide, Department of Economics.
- David Gill & Christine Lipsmeyer, 2005. "Soft money and hard choices: Why political parties might legislate against soft money donations," Public Choice, Springer, vol. 123(3), pages 411-438, June.
- Reuben E., 2002. "Interest groups and politics: The need to concentrate on group formation," Public Economics 0212001, EconWPA.
- DAHM, Matthias & PORTEIRO, Nicolas, 2003.
"The political economy of interest groups: pressure and information,"
CORE Discussion Papers
2003057, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Nicolas Porteiro & Matthias Dahm, 2004. "The Political Economy of Interest Groups: Pressure and Information," Econometric Society 2004 North American Summer Meetings 352, Econometric Society.
- Javier A. Prado Domínguez & Antonio García Lorenzo, 2010. "Competencia e incentivos a la cooperación en la interacción de grupos de interés que pretenden aumentar su influencia política directa: ¿cuál es la importancia de la presión política?," Hacienda Pública Española, IEF, vol. 192(1), pages 105-125, March.
- Randolph Sloof & Frans van Winden, 2000. "Show Them Your Teeth First!," Public Choice, Springer, vol. 104(1), pages 81-120, July.
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