Markets in political influence: rent-seeking, networks and groups
Mainstream economic theories of rent-seeking and interest groups typically ignore the parallel, yet highly relevant, streams of research on social networks and groups. Incorporating these broader social and psychological theories into economic models of rent-seeking appear to be a promising avenue for developing an integrated theory of the market for political influence that predicts many of the observed stylised facts, and can better inform policy makers. Such a theory has the potential to predict the often conflicting findings of empirical studies - such as significant underinvestment in rent-seeking, loyalty of political donors and recipients, and the variation in the prevalence of the ‘revolving door’ across industries. This review highlights the shortcomings of basic rent-seeking theory and analyses how network and group concepts can improve the alignment between theory and evidence. Directions in research and policy analysis based on an integrated model are discussed.
|Date of creation:||19 Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marianne Bertrand & Matilde Bombardini & Francesco Trebbi, 2014.
"Is It Whom You Know or What You Know? An Empirical Assessment of the Lobbying Process,"
American Economic Review,
American Economic Association, vol. 104(12), pages 3885-3920, December.
- Marianne Bertrand & Matilde Bombardini & Francesco Trebbi, 2011. "Is It Whom You Know or What You Know? An Empirical Assessment of the Lobbying Process," NBER Working Papers 16765, National Bureau of Economic Research, Inc.
- Abbink, Klaus, 2004. "Staff rotation as an anti-corruption policy: an experimental study," European Journal of Political Economy, Elsevier, vol. 20(4), pages 887-906, November.
- Menezes, Flavio & Quiggin, John, 2009.
"Markets for Influence,"
Risk and Sustainable Management Group Working Papers
151189, University of Queensland, School of Economics.
- Menezes, Flavio & Quiggin, John, 2007. "Markets for Influence," Risk and Sustainable Management Group Working Papers 151184, University of Queensland, School of Economics.
- Flavio Menezes & John Quiggin, 2007. "Markets for Influence," Risk & Uncertainty Working Papers WP7R07, Risk and Sustainable Management Group, University of Queensland.
- Flavio Menezes & John Quiggin, 2009. "Markets for Influence," Risk & Uncertainty Working Papers WPR09_2, Risk and Sustainable Management Group, University of Queensland.
- Federico Cingano & Paolo Pinotti, 2013.
"Politicians At Work: The Private Returns And Social Costs Of Political Connections,"
Journal of the European Economic Association,
European Economic Association, vol. 11(2), pages 433-465, 04.
- Federico Cingano & Paolo Pinotti, 2009. "Politicians at work. The private returns and social costs of political connections," Temi di discussione (Economic working papers) 709, Bank of Italy, Economic Research and International Relations Area.
- Chen, Charles J.P. & Li, Zengquan & Su, Xijia & Sun, Zheng, 2011. "Rent-seeking incentives, corporate political connections, and the control structure of private firms: Chinese evidence," Journal of Corporate Finance, Elsevier, vol. 17(2), pages 229-243, April.
- Kirkegaard, René, 2013.
"Incomplete information and rent dissipation in deterministic contests,"
International Journal of Industrial Organization,
Elsevier, vol. 31(3), pages 261-266.
- Rene Kirkegaard, 2010. "Incomplete Information and Rent Dissipation in Deterministic Contests," Working Papers 1012, University of Guelph, Department of Economics and Finance.
- Choi, Syngjoo & Gale, Douglas & Kariv, Shachar & Palfrey, Thomas, 2011.
"Network architecture, salience and coordination,"
Games and Economic Behavior,
Elsevier, vol. 73(1), pages 76-90, September.
- Syngjoo Choi & Douglas Gale & Shachar Kariv & Thomas Palfrey, 2008. "Network Architecture, Salience and Coordination," Levine's Working Paper Archive 122247000000001997, David K. Levine.
- Choi, Syngjoo & Gale, Douglas & Kariv, Shachar & Palfrey, Thomas, . "Network architecture, salience and coordination," Working Papers 1291, California Institute of Technology, Division of the Humanities and Social Sciences.
- Che, Yeon-Koo & Gale, Ian L, 1998.
"Caps on Political Lobbying,"
American Economic Review,
American Economic Association, vol. 88(3), pages 643-51, June.
- Ivan Pastine & Tuvana Pastine, 2010. "Politician preferences, law-abiding lobbyists and caps on political contributions," Public Choice, Springer, vol. 145(1), pages 81-101, October.
- Smith, Alexander, 2011. "Group composition and conditional cooperation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 616-622.
- Alcalde, José & Dahm, Matthias, 2010. "Rent seeking and rent dissipation: A neutrality result," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 1-7, February.
- Vignes, Annick & Etienne, Jean-Michel, 2011. "Price formation on the Marseille fish market: Evidence from a network analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 50-67.
- Jordi Blanes i Vidal & Mirko Draca & Christian Fons-Rosen, 2010. "Revolving Door Lobbyists," CEP Discussion Papers dp0993, Centre for Economic Performance, LSE.
- William F. Shughart II & Robert D. Tollison & Zhipeng Yan, 2003. "Rent Seeking into the Income Distribution," Kyklos, Wiley Blackwell, vol. 56(4), pages 441-456, November.
- Treich, Nicolas, 2009.
"Risk-Aversion and Prudence in Rent-Seeking Games,"
TSE Working Papers
09-013, Toulouse School of Economics (TSE).
- Tullock, Gordon, 1997. " Where Is the Rectangle?," Public Choice, Springer, vol. 91(2), pages 149-59, April.
- Mara Faccio, 2006. "Politically Connected Firms," American Economic Review, American Economic Association, vol. 96(1), pages 369-386, March.
- Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
- Engelberg, Joseph & Gao, Pengjie & Parsons, Christopher A., 2012. "Friends with money," Journal of Financial Economics, Elsevier, vol. 103(1), pages 169-188.
- Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
- Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42070. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.