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When the squeakiest wheel gets the most oil: Exploiting one's nuisance power

  • Laussel, Didier
  • van Ypersele, Tanguy

In this paper, a lobby group or union may influence public policy because it is able, via a costly signal such as a boycott or a strike, to negatively impact the image of decision makers. The competence of a government is measured by its ability to do a lot with only a little money. Voters receive, through observing the level of public output, only a noisy signal of government's quality so that the lobby groups, which are better informed, may transmit to them more precise information about it.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 56 (2012)
Issue (Month): 8 ()
Pages: 1593-1606

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Handle: RePEc:eee:eecrev:v:56:y:2012:i:8:p:1593-1606
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

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  1. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006.
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  6. Grossman, G-M & Helpman, E, 1996. "Competing for Endorsements," Papers 182, Princeton, Woodrow Wilson School - Public and International Affairs.
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  8. Cukierman, Alex & Tommasi, Mariano, 1998. "When Does It Take a Nixon to Go to China?," American Economic Review, American Economic Association, vol. 88(1), pages 180-97, March.
  9. Prat, A., 1998. "Campaign Spending with Office-Seeking Politicians, Rational Voters and Multiple Lobbies," Discussion Paper 1998-123, Tilburg University, Center for Economic Research.
  10. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
  11. Clare Leaver, 2009. "Bureaucratic Minimal Squawk Behavior: Theory and Evidence from Regulatory Agencies," American Economic Review, American Economic Association, vol. 99(3), pages 572-607, June.
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