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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
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    File URL: https://www.economics.uci.edu/files/docs/workingpapers/2005-06/Glazer-14.pdf
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    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.
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    3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
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    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. 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.
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    12. 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.
    13. 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.
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    Cited by:

    1. Bellani, Luna & Fabella, Vigile Marie & Scervini, Francesco, 2020. "Strategic Compromise, Policy Bundling and Interest Group Power," IZA Discussion Papers 13924, Institute of Labor Economics (IZA).
    2. 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).

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