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Businessman Candidates: Special-Interest Politics in Weakly Institutionalized Environments

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  • Gehlbach, Scott
  • Sonin, Konstantin

Abstract

We initiate examination of the political boundaries of the firm by exploring the phenomenon of ‘businessman candidates’: business owners and managers who bypass conventional means of political influence to run for public office themselves. We argue that in-house production of political influence will be more likely in institutional environments where candidates find it difficult to make binding campaign promises. When campaign promises are binding, then a businessman may always pay a professional politician to run on the platform that political competition would otherwise compel the businessman to adopt. In contrast, when commitment to a campaign platform is impossible, then candidate identity matters for the policies that will be adopted ex post, implying that a businessman may choose to run for office if the stakes are sufficiently large. We illustrate our arguments through discussion of gubernatorial elections in postcommunist Russia, where businessmen frequently run for public office, institutions to encourage elected officials to keep their campaign promises are weak, and competition for rents is intense.

Suggested Citation

  • Gehlbach, Scott & Sonin, Konstantin, 2004. "Businessman Candidates: Special-Interest Politics in Weakly Institutionalized Environments," CEPR Discussion Papers 4822, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4822
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    More about this item

    Keywords

    businessman candidates; citizen candidates; elections; institutions; political economy;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy

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