Common Agency Lobbying over Coalitions and Policy
This paper presents a theory of common agency lobbying in which policy-interested lobbies can first influence the choice of a governing coalition and then influence the legislative bargaining over policies. Equilibria can involve active lobbying at both stages of the governing process. Contributions can also be made to defeat a policy proposal, and although those contributions are never successful they can influence coalition choice. The equilibrium policy in the legislative bargaining stage is efficient given the coalition selected, but the equilibrium coalition need not be efficient. Lobbying can also lead to the preservation of the status quo and lobby-induced gridlock. An example is presented to identify the multiplicity of equilibria and provide a full characterization of an equilibrium.
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00-04, C.V. Starr Center for Applied Economics, New York University.
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- Leonardo Felli & Antonio Merlo, 2003. "Endogenous lobbying," LSE Research Online Documents on Economics 3590, London School of Economics and Political Science, LSE Library.
- Leonardo Felli & Antonio Merlo, 2001. "Endogenous Lobbying," PIER Working Paper Archive 04-043, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Oct 2004.
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