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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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  1. Kishore Gawande & Usree Bandyopadhyay, 2000. "Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 139-152, February.
  2. Pinelopi Koujianou Goldbe & Giovanni Maggi, 1997. "Protection for Sale: An Empirical Investigation," NBER Working Papers 5942, National Bureau of Economic Research, Inc.
  3. Morten Bennedsen & Sven E. Feldmann, 2002. "Lobbying Legislatures," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 919-948, August.
  4. Elhanan Helpman & Torsten Persson, 1998. "Lobbying and Legislative Bargaining," NBER Working Papers 6589, National Bureau of Economic Research, Inc.
  5. 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.
  6. 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.
  7. Boylan, Richard T, 2002. " Private Bills: A Theoretical and Empirical Study of Lobbying," Public Choice, Springer, vol. 111(1-2), pages 19-47, March.
  8. Laslier, Jean-Francois & Picard, Nathalie, 2002. "Distributive Politics and Electoral Competition," Journal of Economic Theory, Elsevier, vol. 103(1), pages 106-130, March.
  9. Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
  10. LAUSSEL, Didier & LE BRETON, Michel, . "Conflict and cooperation. The structure of equilibrium payoffs in common agency," CORE Discussion Papers RP -1519, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Kvasov, Dmitriy, 2007. "Contests with limited resources," Journal of Economic Theory, Elsevier, vol. 136(1), pages 738-748, September.
  12. 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.
  13. 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.
  14. Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2005. "Vote Buying," Others 0503006, EconWPA.
    • 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.
  15. Mike Felgenhauer & Hans Peter Grüner, 2008. "Committees and Special Interests," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(2), pages 219-243, 04.
  16. Le Breton, Michel & Salanie, Francois, 2003. "Lobbying under political uncertainty," Journal of Public Economics, Elsevier, vol. 87(12), pages 2589-2610, December.
  17. 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.
  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. 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.
  20. 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.
  21. 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.
  22. 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.
  23. Prat, A. & Rustichini, A., 1999. "Games Played Through Agents," Discussion Paper 1999-68, Tilburg University, Center for Economic Research.
  24. Persson, Torsten, 1998. "Economic Policy and Special Interest Politics," Economic Journal, Royal Economic Society, vol. 108(447), pages 310-27, March.
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Cited by:
  1. Le Breton, Michel & Sudhölter, Peter & Zaporozhets, Vera, 2009. "Sequential legislative lobbying," Discussion Papers of Business and Economics 8/2009, Department of Business and Economics, University of Southern Denmark.
  2. Le Breton, Michel & Zaporozhets, Vera, 2007. "Sequential Legislative Lobbying under Political Certainty," IDEI Working Papers 492, Institut d'Économie Industrielle (IDEI), Toulouse.
  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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