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Trust, Coordination, and the Industrial Organization of Political Activism

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Author Info
Marco Battaglini (Princeton University, and CEPR)
Roland Bénabou (Princeton University, CEPR, and NBER)

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Abstract

We study political activism by several interest groups with private signals. When their ideological distance to the policymaker is small, a "low-trust" regime prevails: agents frequently lobby even when it is unwarranted, taking advantage of the confirmation provided by others' activism; conversely, the policymaker responds only to generalized pressure. When ideological distance is large, a "high-trust" regime prevails: lobbying behavior is disciplined by the potential contradiction from abstainers, and the policymaker's response threshold is correspondingly lower. Within some intermediate range, both equilibria coexist. We then study the optimal organization of influence activities, contrasting welfare levels when interest groups act independently and when they coordinate. (JEL: D72, D78, D82) Copyright (c) 2003 The European Economic Association.

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Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 1 (2003)
Issue (Month): 4 (06)
Pages: 851-889
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Handle: RePEc:tpr:jeurec:v:1:y:2003:i:4:p:851-889

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  1. John M. de Figueiredo & Charles M. Cameron, 2006. "Endogenous Cost Lobbying: Theory and Evidence," Hi-Stat Discussion Paper Series d05-156, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  2. George-Marios Angeletos & Christian Hellwig & Alessandro Pavan, 2004. "Coordination and Policy Traps," Levine's Bibliography 122247000000000294, UCLA Department of Economics. [Downloadable!]
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  3. Martimort, David & Semenov, Aggey, 2008. "The Informational Effects of Competition and Collusion in Legislative Politics," MPRA Paper 6989, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  4. Christian Hellwig, 2004. "Dynamic Global Games of Regime Change: Learning, Multiplicity and Timing of Attacks (August 2006, with George-Marios Angeletos and Alessandro Pavan)," UCLA Economics Online Papers 279, UCLA Department of Economics. [Downloadable!]
  5. Elena Panova, 2007. "Congruence Among Voters and Contributions to Political Campaigns," Cahiers de recherche 0722, CIRPEE. [Downloadable!]
  6. George-Marios Angeletos & Christian Hellwig & Alessandro Pavan, 2005. "Signaling in a Global Game: Coordination and Policy Traps," Discussion Papers 1400, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  7. repec:bep:theadv:v:4:y:2004:i:1:p:1100-1100 is not listed on IDEAS
  8. Semenov, Aggey & Martimort, David, 2004. "Communication by Interest Groups and the Organization of Lobbying," MPRA Paper 8519, University Library of Munich, Germany. [Downloadable!]
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