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The Larger the Better? The Role of Interest-Group Size in Legislative Lobbying

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Abstract

We develop a model of legislative lobbying where policy proposals are endogenous. We show that a policy proposer with preferences tilted towards one lobby may be induced by an increase in that interest group's size to propose policies geared towards the opposing lobby. Hence, a larger lobby size can have adverse effects on policy outcomes for this same lobby. This provides another rationale as to why some interests do not organize. Moreover, we find that a second-mover advantage in Groseclose and Snyder (1996)-type lobbying models with exogenous policy proposals can turn into a second-mover disadvantage when the proposal is endogenous.

Suggested Citation

  • Maik T. Schneider, 2010. "The Larger the Better? The Role of Interest-Group Size in Legislative Lobbying," CER-ETH Economics working paper series 10/126, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  • Handle: RePEc:eth:wpswif:10-126
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    File URL: https://www.ethz.ch/content/dam/ethz/special-interest/mtec/cer-eth/cer-eth-dam/documents/working-papers/WP-10-126.pdf
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    References listed on IDEAS

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    1. Helpman Elhanan & Persson Torsten, 2001. "Lobbying and Legislative Bargaining," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 1(1), pages 1-33, November.
    2. Dal Bo, E., 2000. "Bribing Voters," Economics Series Working Papers 9939, University of Oxford, Department of Economics.
    3. Michel Le Breton & Peter Sudhölter & Vera Zaporozhets, 2012. "Sequential legislative lobbying," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(2), pages 491-520, July.
    4. Morten Bennedsen & Sven E. Feldmann, 2002. "Lobbying Legislatures," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 919-948, August.
    5. Roger B. Myerson & Daniel Diermeier, 1999. "Bicameralism and Its Consequences for the Internal Organization of Legislatures," American Economic Review, American Economic Association, vol. 89(5), pages 1182-1196, December.
    6. MichelLe Breton & Vera Zaporozhets, 2010. "Sequential Legislative Lobbying under Political Certainty," Economic Journal, Royal Economic Society, vol. 120(543), pages 281-312, March.
    7. David P. Baron, 2006. "Competitive Lobbying and Supermajorities in a Majority-rule Institution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(4), pages 607-642, December.
    8. repec:cup:apsrev:v:90:y:1996:i:02:p:303-315_20 is not listed on IDEAS
    9. Dekel, Eddie & Jackson, Matthew O. & Wolinsky, Asher, 2009. "Vote Buying: Legislatures and Lobbying," Quarterly Journal of Political Science, now publishers, vol. 4(2), pages 103-128, July.
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    More about this item

    Keywords

    legislative lobbying; vote buying; legislatures; interest groups; political economy;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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