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Cooperative Lobbying and Endogenous Trade Policy

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  • Aidt, Toke Skovsgaard

Abstract

This paper considers trade policies in a small open economy in which two influential interest groups lobby the government. Since competitive lobbying leads to excess rent-seeking expenditures, the lobbies have an incentive to cooperate. The outcome of cooperative lobbying is characterized in terms of lobbying and bargaining power of the two groups. Two important results are derived. First, if the power of competing interest groups is balanced, then cooperation leads to free trade. Second, if it is unbalanced, cooperation may, on the contrary, increase protection. Copyright 1997 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 93 (1997)
Issue (Month): 3-4 (December)
Pages: 455-75

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Handle: RePEc:kap:pubcho:v:93:y:1997:i:3-4:p:455-75

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

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Cited by:
  1. Cheikbossian, Guillaume, 2008. "Heterogeneous groups and rent-seeking for public goods," European Journal of Political Economy, Elsevier, vol. 24(1), pages 133-150, March.
  2. Cheikbossian, Guillaume, 2008. "Rent-seeking, spillovers and the benefits of decentralization," Journal of Urban Economics, Elsevier, vol. 63(1), pages 217-228, January.
  3. Andreas Polk & Armin Schmutzler, 2003. "Lobbying against Environmental Regulation vs. Lobbying for Loopholes," SOI - Working Papers 0301, Socioeconomic Institute - University of Zurich.
  4. Toke S. Aidt & Martin Gassebner, 2007. "Do Autocratic States Trade Less?," KOF Working papers 07-175, KOF Swiss Economic Institute, ETH Zurich.
  5. Ho, Shirley J., 2007. "Impacts of interest groups: Endogenous interaction and lobbying limits," Economic Modelling, Elsevier, vol. 24(3), pages 506-522, May.
  6. Lenka Wildnerova, 2013. "Ability of greens and supergreens to influence environmental regulations," Post-Print dumas-00906165, HAL.
  7. Jackson, Lee Ann, 2000. "An Economic Model Of Agricultural Labeling Policy Harmonization In International Trading Systems," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26012, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

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