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Heterogenous Groups and Rent-Seeking for Public Goods

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  • Cheikbossian, Guillaume

Abstract

We present a model of endogenous public good provision and group rent-seeking influence e.g. lobbying. Specifically, two groups with different preferences over public good consumption and different sizes engage in rent-seeking activities to influence policymaking in their preferred direction. When there is within-group cooperation in lobbying, both groups neutralize each other in the political process. Without within-group cooperation, the free-rider problem in lobbying makes the smaller group politically influent. In both cases, rent-seeking by each group is increasing in the degree of preference heterogeneity and in membership size of both groups.

Suggested Citation

  • Cheikbossian, Guillaume, 2005. "Heterogenous Groups and Rent-Seeking for Public Goods," Cahiers du LASER (LASER Working Papers) 2005.16, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
    • Handle: RePEc:mop:lasrwp:2005.16
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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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