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On the Economic Theory of Interest Groups: Towards a Group Frame of Reference in Political Economics

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  • van Winden, Frans

Abstract

This paper evaluates the development of the economic theory of interest groups. Although there is important progress, many substantial lacunae in our knowledge exist. I argue that part of the problem is the way Public Choice theory developed. Methodological individualism has led to an overindividualized ("a-social") view of human behavior. Furthermore, the importance of imperfect information has been underexposed. Acknowledging the essentially social character of human behavior and the lack of information leads to the conclusion that a more prominent place should be given to the role of social groups. A shift towards a "group frame of reference" is advocated. Copyright 1999 by Kluwer Academic Publishers

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  • van Winden, Frans, 1999. "On the Economic Theory of Interest Groups: Towards a Group Frame of Reference in Political Economics," Public Choice, Springer, vol. 100(1-2), pages 1-29, July.
  • Handle: RePEc:kap:pubcho:v:100:y:1999:i:1-2:p:1-29
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    Citations

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    Cited by:

    1. Sadiraj, V. & Tuinstra, J. & Winden, F. van, 2001. "A dynamic model of endogenous interest group sizes and policymaking," CeNDEF Working Papers 01-03, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
    2. repec:ers:ijebaa:v:v:y:2017:i:3:p:21-30 is not listed on IDEAS
    3. Gil Epstein & Yosef Mealem & Shmuel Nitzan, 2013. "The efficacy and efforts of interest groups in post elections policy formation," Economics of Governance, Springer, vol. 14(1), pages 77-105, February.
    4. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    5. Lee J. Alston & Gary D. Libecap & Bernardo Mueller, 2010. "Interest Groups, Information Manipulation in the Media, and Public Policy: The Case of the Landless Peasants Movement in Brazil," NBER Working Papers 15865, National Bureau of Economic Research, Inc.
    6. Javier A. Prado Domínguez & Antonio García Lorenzo, 2010. "Competencia e incentivos a la cooperación en la interacción de grupos de interés que pretenden aumentar su influencia política directa: ¿cuál es la importancia de la presión política?," Hacienda Pública Española, IEF, vol. 192(1), pages 105-125, March.
    7. Schnellenbach, Jan & Schubert, Christian, 2014. "Behavioral public choice: A survey," Freiburg Discussion Papers on Constitutional Economics 14/03, Walter Eucken Institut e.V..
    8. repec:ers:ijebaa:v:v:y:2017:i:1:p:14-24 is not listed on IDEAS
    9. Marco Pani, 2011. "Hold your nose and vote: corruption and public decisions in a representative democracy," Public Choice, Springer, vol. 148(1), pages 163-196, July.
    10. Andreas Zahn, 2009. "Ökonomische Thesen zur Repräsentation von Verbraucherinteressen in Deutschland," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 78(3), pages 63-80.
    11. Nadia Fiorino & Roberto Ricciuti, 2009. "Interest Groups and Government Spending in Italy, 1876-1913," CESifo Working Paper Series 2722, CESifo Group Munich.
    12. van Winden, Frans, 2015. "Political economy with affect: On the role of emotions and relationships in political economics," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 298-311.
    13. Evangelinos, Christos, 2013. "Interessengruppen und Preissetzung im Verkehr," Discussion Papers 2/2013, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    14. Mazza, Isidoro & van Winden, Frans, 2008. "An endogenous policy model of hierarchical government," European Economic Review, Elsevier, vol. 52(1), pages 133-149, January.
    15. Nadia Fiorino & Roberto Ricciuti, 2008. "Interest Groups, Government Spending and Italian Industrial Growth (1876-1913)," RSCAS Working Papers 2008/08, European University Institute.
    16. Anne Maria Busch, 2015. "Drug Prices, Rents, and Votes in the German Health Care Market: An Application of the Peltzman Model," Working Paper Series in Economics 339, University of Lüneburg, Institute of Economics.
    17. Cruz, Jose Manuel, 2002. "Who is fitting better to Portuguese local demand for public choice: Central government or municipal governments?," ERSA conference papers ersa02p440, European Regional Science Association.
    18. Anne Maria Busch, 2015. "Drug Prices and Pressure Group Activities in the German Health Care Market: An Application of the Becker Model," Working Paper Series in Economics 338, University of Lüneburg, Institute of Economics.
    19. Arthur J.H.C. Schram, 2002. "Experimental Public Choice," Tinbergen Institute Discussion Papers 02-106/1, Tinbergen Institute.
    20. Gray, David M., 2001. "An application of the 'insider-outsider' hypothesis: categorical adjustment assistance programs in France," European Journal of Political Economy, Elsevier, vol. 17(1), pages 139-156, March.

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