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Endogenous Lobbying

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Author Info

  • Leonardo Felli

    (London School of Economics.)

  • Antonio Merlo

    (University of Pennsylvania.)

Abstract

In this article, we present a citizen-candidate model of representative democracy with endogenouslobbying.We find that lobbying induces policy compromise and always affects equilibrium policy outcomes. In particular, even though the policy preferences of lobbies are relatively extreme, lobbying biases the outcome of the political process toward the center of the policy space, and extreme policies cannot emerge in equilibrium. Moreover, in equilibrium, not all lobbies participate in the policy-making process. (JEL: D72, D74, D78) Copyright (c) 2006 by the European Economic Association.

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Bibliographic Info

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

Volume (Year): 4 (2006)
Issue (Month): 1 (03)
Pages: 180-215

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Handle: RePEc:tpr:jeurec:v:4:y:2006:i:1:p:180-215

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  1. Massimo Morelli, 2004. "Party Formation and Policy Outcomes under Different Electoral Systems," Review of Economic Studies, Wiley Blackwell, vol. 71, pages 829-853, 07.
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  12. Gene Grossman & Elhanan Helpman, 1994. "Electoral Competition and Special Interest Politics," NBER Working Papers 4877, National Bureau of Economic Research, Inc.
  13. Osborne, Martin J & Slivinski, Al, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 65-96, February.
  14. Wittman, Donald, 1977. "Candidates with policy preferences: A dynamic model," Journal of Economic Theory, Elsevier, vol. 14(1), pages 180-189, February.
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