IDEAS home Printed from https://ideas.repec.org/p/irv/wpaper/050614.html

Competitive Proposals of Policies by Lobbies

Author

Listed:
  • Ashish Chaturvedi

    (WZ-Berlin, Germany)

  • Amihai Glazer

    (Department of Economics, University of California-Irvine)

Abstract

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.

Suggested Citation

  • Ashish Chaturvedi & Amihai Glazer, 2005. "Competitive Proposals of Policies by Lobbies," Working Papers 050614, University of California-Irvine, Department of Economics.
    • Handle: RePEc:irv:wpaper:050614
    as

    Download full text from publisher

    File URL: https://www.economics.uci.edu/files/docs/workingpapers/2005-06/Glazer-14.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
    2. Epstein, Gil S. & Nitzan, Shmuel, 2004. "Strategic restraint in contests," European Economic Review, Elsevier, vol. 48(1), pages 201-210, February.
    3. Münster, Johannes, 2005. "Lobbying contests with endogenous policy proposals [Lobby Wettkämpfe mit endogenen Politikvorschlägen]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2005-11, WZB Berlin Social Science Center.
    4. 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.
    5. Rasmusen, Eric, 1993. "Lobbying When the Decisionmaker Can Acquire Independent Information," Public Choice, Springer, vol. 77(4), pages 899-913, December.
    6. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    7. 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.
    8. -, 1986. "Agenda = Agenda," Series Históricas 8749, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Joan Esteban & Debraj Ray, 2006. "Inequality, Lobbying, and Resource Allocation," American Economic Review, American Economic Association, vol. 96(1), pages 257-279, March.
    10. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    11. Lohmann, Susanne, 1995. "Information, Access, and Contributions: A Signaling Model of Lobbying," Public Choice, Springer, vol. 85(3-4), pages 267-284, December.
    12. Gilligan, Thomas W & Krehbiel, Keith, 1987. "Collective Decisionmaking and Standing Committees: An Informational Rationale for Restrictive Amendment Procedures," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 3(2), pages 287-335, Fall.
    13. Münster, Johannes, 2005. "Lobbying contests with endogenous policy proposals," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 41, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    14. Devashish Mitra & Dimitrios D. Thomakos & Mehmet A. Ulubaşoğlu, 2016. "“Protection For Sale” In A Developing Country: Democracy Vs. Dictatorship," World Scientific Book Chapters, in: The Political Economy of Trade Policy Theory, Evidence and Applications, chapter 9, pages 163-174, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bellani, Luna & Fabella, Vigile Marie & Scervini, Francesco, 2023. "Strategic compromise, policy bundling and interest group power: Theory and evidence on education policy," European Journal of Political Economy, Elsevier, vol. 77(C).
    2. Bellani, Luna & Fabella, Vigile Marie & Scervini, Francesco, 2020. "Strategic Compromise, Policy Bundling and Interest Group Power," IZA Discussion Papers 13924, IZA Network @ LISER.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Zápal, 2017. "Crafting consensus," Public Choice, Springer, vol. 173(1), pages 169-200, October.
    2. Dhammika Dharmapala, 2002. "The Congressional Budget Process and the Aggregate Level of Spending," Working papers 2002-13, University of Connecticut, Department of Economics.
    3. Matilde Bombardini & Francesco Trebbi, 2020. "Empirical Models of Lobbying," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 391-413, August.
    4. Gawande, Kishore & Krishna, Pravin & Olarreaga, Marcelo, 2009. "What Governments Maximize and Why: The View from Trade," International Organization, Cambridge University Press, vol. 63(3), pages 491-532, July.
    5. Giovanni Facchini & Johannes Van Biesebroeck & Gerald Willmann, 2006. "Protection for sale with imperfect rent capturing," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 845-873, August.
    6. Giacomo A. M. Ponzetto & Maria Petrova & Ruben Enikolopov, 2008. "The Dracula effect: voter information and trade policy," Economics Working Papers 1296, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2020.
    7. Didier Laussel & Michel Le Breton, 2005. ""Favors" for Sale: Strategic Analysis of a Simple Menu Auction with Adverse Selection," Annals of Economics and Finance, Society for AEF, vol. 6(1), pages 53-73, May.
    8. repec:bge:wpaper:514 is not listed on IDEAS
    9. Giovanni Facchini & Marcelo Olarreaga & Peri Silva & Gerald Willmann, 2010. "Substitutability and Protectionism: Latin America's Trade Policy and Imports from China and India," The World Bank Economic Review, World Bank, vol. 24(3), pages 446-473, June.
    10. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2013. "A quantile-based test of protection for sale model," Journal of International Economics, Elsevier, vol. 91(1), pages 40-52.
    11. Pushan Dutt & Devashish Mitra, 2009. "Explaining Agricultural Distortion Patterns," World Bank Publications - Reports 28159, The World Bank Group.
    12. Nauro F. Campos & Francesco Giovannoni, 2008. "Lobbying, Corruption and Other Banes," William Davidson Institute Working Papers Series wp930, William Davidson Institute at the University of Michigan.
    13. Nuno Limão & Patricia Tovar, 2018. "Policy choice: Theory and evidence from commitment via international trade agreements," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 6, pages 179-198, World Scientific Publishing Co. Pte. Ltd..
    14. John Duggan & Jacque Gao, 2020. "Lobbying as a multidimensional tug of war," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 54(1), pages 141-166, January.
    15. Dutt, Pushan & Mitra, Devashish, 2009. "Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance," Agricultural Distortions Working Paper Series 50299, World Bank.
    16. Belloc, Marianna, 2015. "Information for sale in the European Union," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 130-144.
    17. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Protection for sale or surge protection?," European Economic Review, Elsevier, vol. 53(6), pages 675-688, August.
    18. Andrew Jonelis & Wisarut Suwanprasert, 2022. "Protection for sale: evidence from around the world," Public Choice, Springer, vol. 191(1), pages 237-267, April.
    19. Cotton, Christopher, 2007. "Informational Lobbying and Competition for Access," MPRA Paper 1842, University Library of Munich, Germany.
    20. Andrey Stoyanov, 2016. "Regional Trade Agreements and Cross-border Lobbying: Empirical Evidence from the Canada–US Free Trade Agreement Negotiations," Review of International Economics, Wiley Blackwell, vol. 24(1), pages 126-149, February.
    21. Michael E. S. Hoffman, 2005. "Political and Public Finance Motives for Tariffs," International Trade 0510016, University Library of Munich, Germany.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:irv:wpaper:050614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Melissa Valdez (email available below). General contact details of provider: https://edirc.repec.org/data/deucius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.