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Legislative Lobbying under Political Uncertainty

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  • Le Breton, Michel
  • Zaporozhets, Vera

Abstract

In this paper we develop a duopolistic model of legislative lobbying. Two lobbies compete to influence the votes of a group of legislators who have a concern for both social welfare and campaign contributions. The type of a legislator is the relative weight he/she places on social welfare as compared to money. We study the equilibria of this lobbying game under political certainty and uncertainty and examine the circumstances under which the policy is socially efficient, and the amount of money that has been invested in the political process. Special attention is paid to three primitives of the environment: the intensity of the competition between the lobbies, the internal organisation of the legislature and the proportion of bad and good legislators in the political area

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Bibliographic Info

Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 493.

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Date of creation: Nov 2007
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Handle: RePEc:ide:wpaper:7934

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References

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  1. Prat, A. & Rustichini, A., 1999. "Games Played Through Agents," Discussion Paper 1999-68, Tilburg University, Center for Economic Research.
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  4. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
  5. Martin Shubik & H. Peyton Young, 1978. "The Nucleolus as a Noncooperative Game Solution," Cowles Foundation Discussion Papers 478, Cowles Foundation for Research in Economics, Yale University.
  6. Jackson, Matthew O. & Dekel, Eddie & Wolinsky, Asher, 2005. "Vote buying," Working Papers 1215, California Institute of Technology, Division of the Humanities and Social Sciences.
    • Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2004. "Vote Buying," Discussion Papers 1386, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    • Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2005. "Vote Buying," Others 0503006, EconWPA.
  7. Persson, Torsten, 1998. "Economic Policy and Special Interest Politics," Economic Journal, Royal Economic Society, vol. 108(447), pages 310-27, March.
  8. Kvasov, Dmitriy, 2007. "Contests with limited resources," Journal of Economic Theory, Elsevier, vol. 136(1), pages 738-748, September.
  9. Morten Bennedsen & Sven E. Feldmann, 2000. "Lobbying Legislatures," CIE Discussion Papers 2000-04, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  10. Felgenhauer, Mike & Grüner, Hans Peter, 2003. "Committees and special interests," Working Paper Series 0293, European Central Bank.
  11. Roger B. Myerson & Daniel Diermeier, 1999. "Bicameralism and Its Consequences for the Internal Organization of Legislatures," American Economic Review, American Economic Association, vol. 89(5), pages 1182-1196, December.
  12. Helpman, E. & Persson, T., 1998. "Lobbying and Legislative Bargaining," Papers 08-98, Tel Aviv.
  13. Robert E. Baldwin & Christopher S. Magee, 1998. "Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills," NBER Working Papers 6376, National Bureau of Economic Research, Inc.
  14. Le Breton, Michel & Salanie, Francois, 2003. "Lobbying under political uncertainty," Journal of Public Economics, Elsevier, vol. 87(12), pages 2589-2610, December.
  15. Boylan, Richard T, 2002. " Private Bills: A Theoretical and Empirical Study of Lobbying," Public Choice, Springer, vol. 111(1-2), pages 19-47, March.
  16. Laussel, Didier & Le Breton, Michel, 2001. "Conflict and Cooperation: The Structure of Equilibrium Payoffs in Common Agency," Journal of Economic Theory, Elsevier, vol. 100(1), pages 93-128, September.
  17. Stratmann, Thomas, 2002. "Can Special Interests Buy Congressional Votes? Evidence from Financial Services Legislation," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 345-73, October.
  18. James M. Snyder Jr. & Michael M. Ting & Stephen Ansolabehere, 2005. "Legislative Bargaining under Weighted Voting," American Economic Review, American Economic Association, vol. 95(4), pages 981-1004, September.
  19. Stephen Ansolabehere & John M. de Figueiredo & James M. Snyder Jr, 2003. "Why is There so Little Money in U.S. Politics?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 105-130, Winter.
  20. Boylan, R.T., 1997. "Private Bills: A Theoretical and Empirical Study of Lobbying," Washington University 97-04, Business, Law and Economics Center, John M. Olin School of Business, Washington University.
  21. Laslier, Jean-Francois & Picard, Nathalie, 2002. "Distributive Politics and Electoral Competition," Journal of Economic Theory, Elsevier, vol. 103(1), pages 106-130, March.
  22. Eddie Dekel & Matthew O. Jackson & Asher Wolinksy, 2006. "Vote Buying II: Legislatures and Lobbying," Discussion Papers 1433, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  23. Szentes, Balazs & Rosenthal, Robert W., 2003. "Three-object two-bidder simultaneous auctions: chopsticks and tetrahedra," Games and Economic Behavior, Elsevier, vol. 44(1), pages 114-133, July.
  24. Szentes, Balazs & Rosenthal, Robert W., 2003. "Beyond chopsticks: Symmetric equilibria in majority auction games," Games and Economic Behavior, Elsevier, vol. 45(2), pages 278-295, November.
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Cited by:
  1. MichelLe Breton & Vera Zaporozhets, 2010. "Sequential Legislative Lobbying under Political Certainty," Economic Journal, Royal Economic Society, vol. 120(543), pages 281-312, 03.
  2. Le Breton, Michel & Sudhölter, Peter & Zaporozhets, Vera, 2012. "Sequential Legislative Lobbying," TSE Working Papers 12-299, Toulouse School of Economics (TSE).
  3. Le Breton, Michel & Sudhölter, Peter & Zaporozhets, Vera, 2012. "Sequential Legislative Lobbying," LERNA Working Papers 12.19.376, LERNA, University of Toulouse.

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