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Show Them Your Teeth First! A Game-Theoretic Analysis of Lobbying and Pressure

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Author Info
Sloof, Randolph
van Winden, Frans

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Abstract

This 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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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 104 (2000)
Issue (Month): 1-2 (July)
Pages: 81-120
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Handle: RePEc:kap:pubcho:v:104:y:2000:i:1-2:p:81-120

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  1. 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. [Downloadable!]
    Other versions:
  2. 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). [Downloadable!]
    Other versions:
  3. 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. [Downloadable!] (restricted)
  4. Reuben E., 2002. "Interest groups and politics: The need to concentrate on group formation," Public Economics 0212001, EconWPA. [Downloadable!]
  5. Randolph Sloof & Frans van Winden, 2000. "Show Them Your Teeth First!," Public Choice, Springer, vol. 104(1), pages 81-120, July. [Downloadable!] (restricted)
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