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The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation

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  • John M. de Figueiredo
  • Rui J.P. de Figueiredo

Abstract

One of the central concerns about American policy-making institutions is the degree to which political outcomes can be influenced by interested parties. While the literature on interest group strategies in particular institutions - legislative, administrative, and legal is extensive, there is very little scholarship which examines how the interdependencies between institutions affects the strategies of groups. In this paper we examine in a formal theoretical model, how the opportunity to litigate administrative rulemaking in the courts affects the lobbying strategies of competing interest groups at the rulemaking stage. Using a resource-based view of group activity, we develop a number of important insights about each stage - which cannot be observed by examining each one in isolation. We demonstrate that lobbying effort responds to the ideology of the court, and the responsiveness of the court to resources. In particular, 1) as courts become more biased toward the status quo, interest group lobbying investments become smaller, and may be eliminated all together, 2) as interest groups become wealthier, they spend more on lobbying, and 3) as the responsiveness of courts to resources decreases, the effect it has on lobbying investments depends on the underlying ideology of the court.

Suggested Citation

  • John M. de Figueiredo & Rui J.P. de Figueiredo, 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," NBER Working Papers 8981, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:8981
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    References listed on IDEAS

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    Cited by:

    1. Marco Sorge, 2015. "Lobbying (strategically appointed) bureaucrats," Constitutional Political Economy, Springer, vol. 26(2), pages 171-189, June.
    2. Brousseau, Eric & Garrouste, Pierre & Raynaud, Emmanuel, 2011. "Institutional changes: Alternative theories and consequences for institutional design," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1-2), pages 3-19, June.
    3. Megumi Naoi & Ellis Krauss, 2009. "Who Lobbies Whom? Special Interest Politics under Alternative Electoral Systems," American Journal of Political Science, John Wiley & Sons, vol. 53(4), pages 874-892, October.
    4. John M. de Figueiredo, 2009. "Integrated Political Strategy," NBER Working Papers 15053, National Bureau of Economic Research, Inc.
    5. Deepak Somaya & Christine A. McDaniel, 2012. "Tribunal Specialization and Institutional Targeting in Patent Enforcement," Organization Science, INFORMS, vol. 23(3), pages 869-887, June.
    6. Mariano Tommasi & Matias Iaryczower & Pablo T. Spiller, 2004. "Judicial Lobbying: The Politics of Labor Law, Constitutional Interpretation. Argentina 1935-1998," Working Papers 73, Universidad de San Andres, Departamento de Economia, revised Jun 2004.
    7. Woon Leong Lin, 2019. "Is Corporate Political Activity an Investment or Agency? An Application of System GMM Approach," Administrative Sciences, MDPI, Open Access Journal, vol. 9(1), pages 1-22, January.

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    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • K2 - Law and Economics - - Regulation and Business Law

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