Competitive Proposals of Policies by Lobbies
AbstractWe 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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Bibliographic InfoPaper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 050614.
Length: 14 pages
Date of creation: Nov 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-21 (All new papers)
- NEP-CDM-2006-07-21 (Collective Decision-Making)
- NEP-POL-2006-07-21 (Positive Political Economics)
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