An optimal auction perspective on lobbying
AbstractThe lobbying process has been described as an auction (see, for instance, Bernheim and Whinston). The auction rules picked are supposed to be descriptive, however they vary from author to author. An optimal auction for a government official leads to the same policy as in Bernheim and Whinston, although contributions are different. A necessary condition for an auction to be optimal is that it allows contributions from the government official to the lobby. The proof of these results depends on an extension of the work by Bernheim and Whinston on implementation in environments with complete information. In particular all choice functions are Coalition-Proof Nash equilibrium implementable when individuals preferences can be represented by quasi-linear utility functions bounded with respect to all variables -- except for money.
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 9602001.
Date of creation: 26 Feb 1996
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Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
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- Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993.
"Rigging the Lobbying Process: An Application of the All-Pay Auction,"
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- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "Rigging The Lobbying Process: An Application Of The All- Pay Auction," Purdue University Economics Working Papers 1002, Purdue University, Department of Economics.
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- 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.
- Mikael Priks, 2007.
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- Bertoletti, Paolo, 2006. "On the reserve price in all-pay auctions with complete information and lobbying games," MPRA Paper 1083, University Library of Munich, Germany.
- Mikael Priks, 2012. "Competition among officials and the abuse of power," Public Choice, Springer, vol. 150(3), pages 425-438, March.
- Theo Eicher & Thomas Osang, 2002. "Protection for Sale: An Empirical Investigation: Comment," American Economic Review, American Economic Association, vol. 92(5), pages 1702-1710, December.
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