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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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File URL: http://www.sciencedirect.com/science/article/pii/S0014292112000840
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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
DOI: 10.1016/j.euroecorev.2012.06.004
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

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