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The Dynamics of Lobbying--A Differential Game

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Author Info

  • Wirl, Franz

Abstract

This paper presents a dynamic model on lobbying. The interactions between two competing lobbies, who attempt to influence regulations and legislation, are modeled as a differential game. The author considers for this game first a time-consistent and then a subgame-perfect equilibrium (in linear Markov strategies). The subgame-perfect equilibrium lowers considerably lobbying activity and expenses. This provides a partial explanation of the puzzle that rent-seeking expenses are often small compared with the prize sought. Copyright 1994 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 80 (1994)
Issue (Month): 3-4 (September)
Pages: 307-23

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Handle: RePEc:kap:pubcho:v:80:y:1994:i:3-4:p:307-23

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Ian A. MacKenzie, 2009. "Controlling externalities in the presence of rent seeking," CER-ETH Economics working paper series 09/111, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  2. J. Atsu Amegashie & Marco Runkel, 2008. "The Paradoxes of Revenge in Conflicts," Working Papers 0805, University of Guelph, Department of Economics and Finance.
  3. Etienne Farvaque & Gael Lagadec, 2009. "Electoral Control when Policies are for Sale," CESifo Working Paper Series 2522, CESifo Group Munich.
  4. Luisito Bertinelli & Carmen Camacho & Benteng Zou, 2011. "Carbon capture and storage and transboundary pollution: a differential game approach," CREA Discussion Paper Series 11-17, Center for Research in Economic Analysis, University of Luxembourg.
  5. Ngendakuriyo, Fabien & Zaccour, Georges, 2013. "Fighting corruption: To precommit or not?," Economics Letters, Elsevier, vol. 120(2), pages 149-154.
  6. Fabien NGENDAKURIYO, 2009. "Institutions Quality and Growth," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  7. Beviá, Carmen & Corchón, Luis C., 2013. "Endogenous strength in conflicts," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 297-306.
  8. Shaffer, Sherrill & Shogren, Jason F., 2009. "Repeated contests: A general parameterization," Economics Letters, Elsevier, vol. 105(2), pages 159-161, November.

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