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Endogenous Lobbying

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Listed:
  • Leonardo Felli
  • Antonio M. Merlo

Abstract

In this paper we endogenize the number and characteristics of lobbies in a citizen-candidate model of representative democracy where citizens can lobby an elected policy-maker. We find that lobbying always matters. That is, lobbying always affects equilibrium policy outcomes. Moreover, only one policy outcome emerges in equilibrium. An "extremist" candidate is elected and implements a "centrist" policy that differs from the one most preferred by the median voter. These results are in contrast with the ones obtained in the context of a citizen-candidate model where lobbies are exogenous.

Suggested Citation

  • Leonardo Felli & Antonio M. Merlo, 2000. "Endogenous Lobbying," CESifo Working Paper Series 291, CESifo.
  • Handle: RePEc:ces:ceswps:_291
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Lobbying; citizen-candidate; representative democracy; electoral competition;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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