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Competitive Proposals of Policies by Lobbies

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Author Info
Ashish Chaturvedi () (WZ-Berlin, Germany)
Amihai Glazer () (Department of Economics, University of California-Irvine)

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Abstract

We consider a policymaker who must choose between the status quo and proposals made by lobbyists. Each lobbyist aims to maximize the tariff accorded his industry, but realizes that if he proposes too high a tariff, the policymaker may choose the proposal offered by another lobbyist which incorporates a lower tariff. The equilibrium has a positive probability that the policymaker who aims to maximize social welfare adopts a tariff higher than the one he prefers.

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Publisher Info
Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 050614.

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Length: 14 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:irv:wpaper:050614

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  1. Glazer, Amihai & McMillan, Henry, 1992. " Amend the Old or Address the New: Broad-Based Legislation When Proposing Policies Is Costly," Public Choice, Springer, vol. 74(1), pages 43-58, July.
  2. Rasmusen, Eric, 1993. " Lobbying When the Decisionmaker Can Acquire Independent Information," Public Choice, Springer, vol. 77(4), pages 899-913, December.
  3. Epstein, Gil S. & Nitzan, Shmuel, 2004. "Strategic restraint in contests," European Economic Review, Elsevier, vol. 48(1), pages 201-210, February. [Downloadable!] (restricted)
    Other versions:
  4. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
    Other versions:
  5. Gilligan, Thomas W & Krehbiel, Keith, 1987. "Collective Decisionmaking and Standing Committees: An Informational Rationale for Restrictive Amendment Procedures," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 287-335, Fall.
  6. Pinelopi Koujianou Goldberg & Giovanni Maggi, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December. [Downloadable!] (restricted)
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  7. Joan Esteban & Debraj Ray, 2006. "Inequality, Lobbying, and Resource Allocation," American Economic Review, American Economic Association, vol. 96(1), pages 257-279, March. [Downloadable!]
  8. Johannes Münster, 2005. "Lobbying contests with endogenous policy proposals," Discussion Papers 41, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  9. Banks, Jeffrey S. & Gasmi, Farid., 1986. "Endogenous Agenda Formation in Three-Person Committees," Working Papers 603, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  10. Lohmann, Susanne, 1995. " Information, Access, and Contributions: A Signaling Model of Lobbying," Public Choice, Springer, vol. 85(3-4), pages 267-84, December.
  11. Devashish Mitra & Dimitrios D. Thomakos & Mehmet A. Ulubaşoglu, 2002. ""Protection For Sale" In A Developing Country: Democracy Vs. Dictatorship," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 497-508, August. [Downloadable!] (restricted)
  12. Harrington, Joseph E, Jr, 1990. " The Power of the Proposal Maker in a Model of Endogenous Agenda Formation," Public Choice, Springer, vol. 64(1), pages 1-20, January.
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