The political economy of interest groups: pressure and information
We examine the incentives of an interest group to provide a political decision-maker with policy-relevant information and to exert pressure on her. Both activities are costly but may induce the lobby's preferred policy. Our paper provides an integrated analysis of both lobbying activities and leads to interesting insights into the behavior of the interest group. Moreover, we show how conclusions of models that take into account only one of these activities may change. Our main results say that the relationship between the pressure exerted and the amount of information transmitted is not monotonic, and that an increase in the amount of information that the lobby transmits may be socially harmful. This analysis has immediate implications for the current discussions in the United States and Europe concerning the reform of their respective rules of party and candidate financing.
|Date of creation:||00 Jul 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Austen-Smith, David, 1998. "Allocating Access for Information and Contributions," Journal of Law, Economics and Organization, Oxford University Press, vol. 14(2), pages 277-303, October.
- Richard Ball, 1995. "Interest Groups, Influence And Welfare," Economics and Politics, Wiley Blackwell, vol. 7(2), pages 119-146, 07.
- Grossman, G-M & Helpman, E, 1996.
"Competing for Endorsements,"
182, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, Gene & Helpman, Elhanan, 1996. "Competing for Endorsements," CEPR Discussion Papers 1546, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Elhanan Helpman, 1996. "Competing for Endorsements," Harvard Institute of Economic Research Working Papers 1784, Harvard - Institute of Economic Research.
- Grossman, G.M. & Helpman, E., 1998. "Competing for Endorsements," Papers 09-98, Tel Aviv.
- Bennedsen, Morten & Feldmann, Sven E., 2000.
"Informational Lobbying And Political Contributions,"
08-2000, Copenhagen Business School, Department of Economics.
- Bennedsen, Morten & Feldmann, Sven E., 2006. "Informational lobbying and political contributions," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 631-656, May.
- Morten Bennedsen & Sven E. Feldmann, 2000. "Informational Lobbying and Political Contributions," CIE Discussion Papers 2000-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
- Aghion, Philippe & Tirole, Jean, 1997.
"Formal and Real Authority in Organizations,"
4554125, Harvard University Department of Economics.
- Philippe Aghion & Jean Tirole, 1994. "Formal and Real Authority in Organizations," Working papers 95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, Philippe & Tirole, Jean, 1994. "Formal and Real Authority in Organizations," IDEI Working Papers 37, Institut d'Économie Industrielle (IDEI), Toulouse.
- Philippe Aghion & Jean Tirole, 1994. "Normal and Real Authority in Organizations," Working papers 94-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- Michael J. Mandel, 1999. "Going for the Gold: Economists as Expert Witnesses," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 113-120, Spring.
- Lohmann, Susanne, 1995. " Information, Access, and Contributions: A Signaling Model of Lobbying," Public Choice, Springer, vol. 85(3-4), pages 267-84, December.
- Bennedsen, Morten & Feldmann, Sven E., 2000.
07-2000, Copenhagen Business School, Department of Economics.
- Prat, Andrea, 2002.
"Campaign Spending with Office-Seeking Politicians, Rational Voters, and Multiple Lobbies,"
Journal of Economic Theory,
Elsevier, vol. 103(1), pages 162-189, March.
- Prat, A., 1998. "Campaign Spending with Office-Seeking Politicians, Rational Voters and Multiple Lobbies," Discussion Paper 1998-123, Tilburg University, Center for Economic Research.
- Sloof, Randolph & van Winden, Frans, 2000. " Show Them Your Teeth First! A Game-Theoretic Analysis of Lobbying and Pressure," Public Choice, Springer, vol. 104(1-2), pages 81-120, July.
- Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
- Laffont, J.-J., 1999. "Political Economy, Information and Incentives," Papers 99.516, Toulouse - GREMAQ.
- Laffont, Jean-Jacques, 1999. "Political economy, information and incentives1," European Economic Review, Elsevier, vol. 43(4-6), pages 649-669, April.
- Randolph Sloof & Frans van Winden, 2000. "Show Them Your Teeth First!," Public Choice, Springer, vol. 104(1), pages 81-120, July.
- Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, June.
- James M. Snyder, 1991. "On Buying Legislatures," Economics and Politics, Wiley Blackwell, vol. 3(2), pages 93-109, 07.
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2003057. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If references are entirely missing, you can add them using this form.