Competitive Proposals of Policies by Lobbies
We consider a policymaker who must choose between the status quo and proposals made by lobbyists. Each lobbyist aims to maximize the tariff accorded his industry, but realizes that if he proposes too high a tariff, the policymaker may choose the proposal offered by another lobbyist which incorporates a lower tariff. The equilibrium has a positive probability that the policymaker who aims to maximize social welfare adopts a tariff higher than the one he prefers.
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- Harrington, Joseph E, Jr, 1990. "The Power of the Proposal Maker in a Model of Endogenous Agenda Formation," Public Choice, Springer, vol. 64(1), pages 1-20, January.
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- Glazer, Amihai & McMillan, Henry, 1992. "Amend the Old or Address the New: Broad-Based Legislation When Proposing Policies Is Costly," Public Choice, Springer, vol. 74(1), pages 43-58, July.
- Devashish Mitra & Dimitrios D. Thomakos & Mehmet A. Ulubaşoglu, 2002. ""Protection For Sale" In A Developing Country: Democracy Vs. Dictatorship," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 497-508, August. Full references (including those not matched with items on IDEAS)
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