Lobbying and Legislative Bargaining
AbstractWe examine the effects of the interaction between lobbying and legislative bargaining on policy formation. Two systems are considered: a US-style congressional system and a European-style parliamentary system. First, we show that the policies generated are not intermediate between policies that would result from pure lobbying or from pure legislative bargaining. Second, we show that in congressional systems the resulting policies are strongly skewed in favor of the agenda-setter. In parliamentary systems they are skewed in favor of the coalition, but within the coalition there are many possible outcomes (there are multiple equilibria) with the agenda-setter having no particular advantage. Third, we show that equilibrium contributions are very small, despite the fact that lobbying has a marked effect on policies.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6589.
Date of creation: Jun 1998
Date of revision:
Publication status: published as Advances in Economic Analysis & Policy, (B.E. Journal of Economic Analysis & Policy) Vol. 1: Iss. 1, Article 3
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Other versions of this item:
- Elhanan Helpman & Torsten Persson, 1998. "Lobbying and Legistlative Bargaining," Harvard Institute of Economic Research Working Papers 1837, Harvard - Institute of Economic Research.
- Helpman, E. & Persson, T., 1998. "Lobbying and Legislative Bargaining," Papers 08-98, Tel Aviv.
- D7 - Microeconomics - - Analysis of Collective Decision-Making
This paper has been announced in the following NEP Reports:
- NEP-CDM-1998-06-15 (Collective Decision-Making)
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