Lobbying and Legistlative Bargaining
We examine the effects of the interaction between lobbying and legislative bargaining on policy formation. Two systems are considered: a US-style congressional system and a European-style parliamentary system. First we show that the policies generated are not intermediate between policies that would result from pure lobbying or from pure legislative bargaining. Second, we show that in congressional systems the resulting policies are strongly skewed in favor of the agenda-setter. In parliamentary systems they are skewed in favor of the coalition, but within the coalition there are many possible outcomes (there are multiple equilibria) with the agenda-setter having no particular advantage. Third, we show that equilibrium contributions are very small, despite the fact that lobbying has a marked effect on policies.
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- Gene Grossman & Elhanan Helpman, 1994.
"Electoral Competition and Special Interest Politics,"
NBER Working Papers
4877, National Bureau of Economic Research, Inc.
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21-92, Tel Aviv.
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"Common Agency and Coordination: General Theory and Application to Government Policy Making,"
Journal of Political Economy,
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"Seniority in Legislatures,"
725, California Institute of Technology, Division of the Humanities and Social Sciences.
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- Persson, Torsten, 1998. "Economic Policy and Special Interest Politics," Economic Journal, Royal Economic Society, vol. 108(447), pages 310-27, March.
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