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Protection, lobbying, and market structure

  • Hillman, Arye L.
  • Van Long, Ngo
  • Soubeyran, Antoine

We analyze a model of lobbying by oligopolists who allocate resources between lobbying and internal cost-reducing activities. We ask the following questions: (i) if firms differ with respect to comparative advantage in lobbying, what is the equilibrium allocation of resources between lobbying and cost-reducing activities? (ii) can the possibility of lobbying reverse the profitability ranking among firms? (iii) under what condition is the conventional wisdom (that highly concentrated industries tend to obtain more protection) valid? On analyse un modèle de lobbying par des entrepreneurs qui allouent leur temps entre les activités de supervision. On donne des réponses aux questions suivantes: (i) quelles sont les allocations de ressources en équilibre? Le lobbying pourrait-il renverser l'ordre de rentabilité parmi les firmes? (iii) y a-t-il une corrélation entre le degré de concentration d'une industrie et la protection qu'elle obtient du gouvernement?

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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 54 (2001)
Issue (Month): 2 (August)
Pages: 383-409

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Handle: RePEc:eee:inecon:v:54:y:2001:i:2:p:383-409
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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