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Collective vs. Individual Lobbying

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  • Norimichi Matsueda

    (School of Economics, Kwansei Gakuin University)

Abstract

In this paper, we compare the political equilibrium outcomes under two distinct institutional setups concerning the regulated firms' lobbying environment: collective and individual lobbying. Under both regimes, each firm voluntarily chooses whether or not to participate in lobbying activities to influence an environmental regulation with which all the firms need to comply eventually. While, under collective lobbying, firms form a single group before conducting lobbying activities, there is no such pre-coordination under individual lobbying and firms can lobby independently if they wish. The difference in the equilibrium outcomes is quite striking: whereas only a small fraction of firms join the industrial lobbying group under collective lobbying, all the firms participate in lobbying activities in the case of individual lobbying. We also evaluate the desirability of the two lobbying regimes from the perspectives of both individual firms and the society as a whole, and discuss the implications for possible institutional interventions.

Suggested Citation

  • Norimichi Matsueda, 2018. "Collective vs. Individual Lobbying," Discussion Paper Series 175, School of Economics, Kwansei Gakuin University, revised Feb 2018.
    • Handle: RePEc:kgu:wpaper:175
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    Cited by:

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    2. Donatella Gatti & Julien Vauday, 2023. "Environmental transition through social change and lobbying by citizens," Working Papers hal-04158754, HAL.
    3. Donatella Gatti & Julien Vauday, 2023. "Green cultural transition, environmental taxes, and collective lobbying by social groups of citizens," Post-Print hal-04189019, HAL.
    4. Liu, Yongzheng & Zhang, Xiaoge, 2023. "Environmental regulation, political incentives, and mortality in China," European Journal of Political Economy, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    common agency; compensating equilibrium; environmental regulation; free-rider; lobbying;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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