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When Do Firms Hire Lobbyists? The Organization of Lobbying at the Federal Communications Commission

  • John M. de Figueiredo
  • James J. Kim
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    This paper examines the explanatory power of transaction cost economics to explain vertical integration decisions for lobbying by firms. We examine 150 lobbying contacts at the Federal Communications Commission (FCC) on the issue of payphone compensation for dial-around calls. When firms lobby on topics that are highly firm-specific and prone to sensitive-information leakage, they are more likely to use employees to lobby the FCC. However, when topics arise that are more general to the industry and do not include sensitive information, firms are more likely to use outside counsel to lobby the FCC.

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    File URL: http://www.nber.org/papers/w10553.pdf
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    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10553.

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    Date of creation: Jun 2004
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    Publication status: published as de Figueiredo, John M. and James J. Kim. "When Do Firms Hire Lobbyists? The Organization Of Lobbying At The Federal Communications Commission," Industrial and Corporate Change, 2004, v13(6,Dec), 883-900.
    Handle: RePEc:nbr:nberwo:10553
    Note: IO LE
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Web page: http://www.nber.org
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    1. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    2. Erin Anderson, 1985. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 4(3), pages 234-254.
    3. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
    4. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    5. Alt, James E. & Carlsen, Fredrik & Heum, Per & Johansen, Kåre, 1999. "Asset Specificity and the Political Behavior of Firms: Lobbying for Subsidies in Norway," International Organization, Cambridge University Press, vol. 53(01), pages 99-116, December.
    6. Baron David P., 1999. "Integrated Market and Nonmarket Strategies in Client and Interest Group Politics," Business and Politics, De Gruyter, vol. 1(1), pages 7-34, December.
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