Lobby Interaction and Trade Policy
AbstractThe paper introduces lobby interaction in the ''protection for sale'' framework. Special interest groups provide unconditional contributions where the marginal contribution of a lobby is decreasing in the total sum collected by the government. In contrast to the ''protection for sale'' model, for a given proportion of capital owners in the organized sectors, an increase in the number of lobbies has an impact on trade policy. It is also shown that an increase in the number of lobbies has two opposite effects on each lobby's contribution: a competition effect which lowers a lobby's contribution and a political influence effect which tends to increase its contribution.
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Bibliographic InfoPaper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2010-04.
Length: 12 pages
Date of creation: May 2010
Date of revision:
lobbying; interest groups; trade policy; protection for sale;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
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