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Special Interest Politics and Endogenous Lobby Formation

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  • Laussel Didier G

    (Université de la Méditerranée)

Abstract

We analyze endogenous lobby formation within a slightly modified version of the "special interest politics" model of Persson (1998). In our model the interest groups hold different fixed endowments of an "infrastructure good" which is a complement in consumption of the local public good. For any fixed set of organized groups the lobbying game is shown to have a unique equilibrium if the cost-elasticity of the supply of public good to the interest groups by the government is not too large. The groups which benefit from larger infrastructure endowments are then proved to be the ones which become organized while the others remain unorganized.

Suggested Citation

  • Laussel Didier G, 2006. "Special Interest Politics and Endogenous Lobby Formation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-14, February.
    • Handle: RePEc:bpj:bejtec:v:topics.6:y:2006:i:1:n:1
    DOI: 10.2202/1534-598X.1134
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    Cited by:

    1. Martínez-Sánchez, Francisco, 2010. "Lobbyin to prevent commercial piracy," UMUFAE Economics Working Papers 13255, DIGITUM. Universidad de Murcia.
    2. Pablo Río & Xavier Labandeira, 2009. "Barriers to the introduction of market-based instruments in climate policies: an integrated theoretical framework," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 10(1), pages 41-68, March.
    3. Matsueda, Norimichi, 2020. "Collective vs. individual lobbying," European Journal of Political Economy, Elsevier, vol. 63(C).
    4. Zudenkova Galina, 2017. "Lobbying as a Guard against Extremism," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-17, January.
    5. Zudenkova, Galina, 2010. "Sincere Lobby Formation," Working Papers 2072/151545, Universitat Rovira i Virgili, Department of Economics.
    6. Marco Catola & Silvia Leoni, 2023. "Pollution Abatement and Lobbying in a Cournot Game. An Agent-Based Modelling approach," Discussion Papers 2023/294, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    7. Martimort, David, 2019. ""When Olson Meets Dahl": From Inefficient Groups Formation to Inefficient Policy-Making," CEPR Discussion Papers 13843, C.E.P.R. Discussion Papers.
    8. Pablo Río & Miguel Tarancón & Cristina Peñasco, 2014. "The determinants of support levels for wind energy in the European Union. An econometric study," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(4), pages 391-410, April.
    9. Catola, Marco & D'Alessandro, Simone, 2020. "Market competition, lobbying influence and environmental externalities," European Journal of Political Economy, Elsevier, vol. 63(C).
    10. Pablo Río & Xavier Labandeira, 2009. "Barriers to the introduction of market-based instruments in climate policies: an integrated theoretical framework," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 10(1), pages 41-68, March.

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