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Lobbying of Firms by Voters

Author

Listed:
  • Matthias Dahm

    (d'Economia, Universitat Rovira i Virgili)

  • Robert Dur

    (Department of Economics, Erasmus University)

  • Amihai Glazer

    (Department of Economics, University of California-Irvine)

Abstract

A firm may induce voters or elected politicians to support a policy it favors by suggesting that it is more likely to invest in a district whose voters or representatives support the policy. In equilibrium, no one vote may be decisive, and the policy may gain strong support though the majority of districts suffer from adoption of the program. When votes reveal information about the district, the firm's implicit promise or threat can be credible.

Suggested Citation

  • Matthias Dahm & Robert Dur & Amihai Glazer, 2009. "Lobbying of Firms by Voters," Working Papers 080926, University of California-Irvine, Department of Economics.
    • Handle: RePEc:irv:wpaper:080926
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Lobbying; Inefficient policies; Signaling;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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