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- Lobby Groups And The Financial Support Of Election Campaigns

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Author Info
M. Socorro Puy (Universidad de Málaga)

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Abstract

We study a model of competition between two political parties with policy compromise. There is aspecial interest group with well-defined preferences on political issues. Voters are of two kinds:impressionable and knowledgeable. The impressionable voters are influenced by the electioncampaigns. The objective of the parties is to obtain the maximum votes. Parties compete forfinancial support from a given interest group. Each party proposes a plataform in exchange for anamount of campaign funds, and the interest group decides whether to accept or reject each ofcampaign funds, and the interest group decides whether to accept or reject each of theseproposals. We show that parties competition resembles, to a certain extent, Bertrandcompetition. Furthermore, in equilibrium only one party gets funds from interest group. This resultdiffers from the one obtained in a similar model by Grossman and Helpman (1996a) (1996b), inwhich, in equlibrium, both parties are financed by the interest group. This differnce asisesbecause Grossman and Helpman assume that it is the interest group who makes the proposalsto the political parties.

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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1999-18.

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Length: 33 pages
Date of creation: Nov 1999
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:1999-18

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Related research
Keywords: Contract proposal; Lobby groups; Policy compromise;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Austen-Smith, David & Banks, Jeffrey., 1987. "Elections, Coalitions, and Legislative Outcomes," Working Papers 643, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Langbein, Laura I, 1993. " PACs, Lobbies and Political Conflict: The Case of Gun Control," Public Choice, Springer, vol. 77(3), pages 551-72, November.
  3. Bernheim, B Douglas & Whinston, Michael D, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 1-31, February. [Downloadable!] (restricted)
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