Communication by Interest Groups and the Organization of Lobbying
AbstractThis paper uses a mechanism design approach to characterize the optimal organization of lobbying groups in a political context where those groups have private information on their ideal points in a one-dimensional policy space. First, we derive the optimal mechanism for one single group and show that it depends on the confict of interests between his own preferences and those of the policy-maker but also on how informative the distribution of the interest group's ideal point is. We then extend the analysis to the case of multiple nterest groups. Although dealing with a coalition of those groups allows the policy-maker to benefit from a more precise information (an informativeness effect), the optimal organization may nevertheless call for a decentralized mechanism where groups compete because this is the only way to transmit information on the relative strength of their preferences (a screening effect). A coalition of interest groups dominates for small values of the confict of interests whereas competing interest groups emerge for greater values.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8519.
Date of creation: 01 Jul 2004
Date of revision:
Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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.:
- Vijay Krishna & John Morgan, 1999.
"A Model of Expertise,"
Game Theory and Information
- Vijay Krishna & John Morgan, 1999. "A Model of Expertise," Working Papers 154, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
- Krishna, V. & Morgan, J., 1999. "A Model of Expertise," Papers 206, Princeton, Woodrow Wilson School - Public and International Affairs.
- Marco Battaglini, 2000.
"Multiple Referrals and Multidimensional Cheap Talk,"
Econometric Society World Congress 2000 Contributed Papers
1557, Econometric Society.
- Marco Battaglini, 2002. "Multiple Referrals and Multidimensional Cheap Talk," Econometrica, Econometric Society, vol. 70(4), pages 1379-1401, July.
- Marco Battaglini, 1999. "Multiple Referrals and Multidimensional Cheap Talk," Discussion Papers 1295, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gromb, Denis & Martimort, David, 2004.
"The Organization of Delegated Expertise,"
CEPR Discussion Papers
4572, C.E.P.R. Discussion Papers.
- Yves Sprumont, 1995. "Strategyproof Collective Choice in Economic and Political Environments," Canadian Journal of Economics, Canadian Economics Association, vol. 28(1), pages 68-107, February.
- H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
- Nahum D. Melumad & Toshiyuki Shibano, 1991. "Communication in Settings with No. Transfers," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 173-198, Summer.
- Baron, David P. & Meirowitz, Adam, 2001. "Relations between Fully-Revealing Equilibria of Multiple-Sender Signaling and Screening Models," Research Papers 1711, Stanford University, Graduate School of Business.
- Dana Jr. James D., 1993. "The Organization and Scope of Agents: Regulating Multiproduct Industries," Journal of Economic Theory, Elsevier, vol. 59(2), pages 288-310, April.
- V. Crawford & J. Sobel, 2010.
"Strategic Information Transmission,"
Levine's Working Paper Archive
544, David K. Levine.
- Marco Battaglini & Roland Bénabou, 2003. "Trust, Coordination, and the Industrial Organization of Political Activism," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 851-889, 06.
- Richard J. Gilbert & Michael H. Riordan, 1995. "Regulating Complementary Products: A Comparative Institutional Analysis," RAND Journal of Economics, The RAND Corporation, vol. 26(2), pages 243-256, Summer.
- Laffont, Jean-Jacques & Maskin, Eric, 1980. "A Differential Approach to Dominant Strategy Mechanisms," Econometrica, Econometric Society, vol. 48(6), pages 1507-20, September.
- Mookherjee, Dilip & Reichelstein, Stefan, 1992. "Dominant strategy implementation of Bayesian incentive compatible allocation rules," Journal of Economic Theory, Elsevier, vol. 56(2), pages 378-399, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.