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Citizens or lobbies: who controls policy?

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  • P. Roberti

Abstract

This paper analyses a model of electoral competition with lobbying, where candidates hold private information about their willingness to pander to lobbies, if elected. I show that this uncertainty induces risk-averse voters to choose candidates who implement policies biased in favor of the lobby. Increasing the prior probability of non-pandering candidates can increase the effect of lobbying. If, however, the cost of running for office is sufficiently large, there is no effect of lobbying on policy. The model thus demonstrates that uncertainty on the influence of special interests can lead to large effects of lobbying on policy.

Suggested Citation

  • P. Roberti, 2016. "Citizens or lobbies: who controls policy?," Working Papers wp1085, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:wp1085
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    Cited by:

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    2. Matter, Ulrich & Roberti, Paolo & Slotwinski, Michaela, 2019. "Vote buying in the US Congress," ZEW Discussion Papers 19-052, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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