Politician preferences and caps on political lobbying
This paper extends Che and Gale (1998) by allowing the incumbent politician to have a preference for the policy position of one of the lobbyists. The effect of a contribution cap is analyzed where two lobbyists contest for a political prize. The cap always helps the lobbyist whose policy position is preferred by the politician no matter whether it is the high-valuation or the low-valuation contestant. In contrast to Che and Gale, once the cap is binding a more restrictive cap always reduces expected aggregate contributions. However, the politician might support the legislation of a barely binding cap. When politician policy preferences perfectly reflect the will of the people, a more restrictive cap is always welfare increasing. When lobbyist’s valuations completely internalize all social costs and benefits, a cap is welfare improving if and only if the politician favors the high-value policy. Even a barely binding cap can have significant welfare consequences.
|Date of creation:||Nov 2006|
|Contact details of provider:|| Postal: UCD, Belfield, Dublin 4|
Fax: +353-1-283 0068
Web page: http://www.ucd.ie/economics
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.:
- Yeon-Koo Che & Ian Gale, 1998.
"Caps on Political Lobbying,"
- E. Feess & Gerd Muehlheusser & M. Walzl, 2008.
Journal of Economics,
Springer, vol. 93(3), pages 267-291, 04.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1992.
"Rigging the Lobbying Process: An Application of the All- Pay Auction,"
9-92-2, Pennsylvania State - Department of Economics.
- Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993. "Rigging the Lobbying Process: An Application of the All-Pay Auction," American Economic Review, American Economic Association, vol. 83(1), pages 289-294, March.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "Rigging The Lobbying Process: An Application Of The All- Pay Auction," Purdue University Economics Working Papers 1002, Purdue University, Department of Economics.
- Amegashie, J Atsu, 2003. "The All-Pay Auction When a Committee Awards the Prize," Public Choice, Springer, vol. 116(1-2), pages 79-90, July.
- Prat, Andrea, 2002.
"Campaign Spending with Office-Seeking Politicians, Rational Voters, and Multiple Lobbies,"
Journal of Economic Theory,
Elsevier, vol. 103(1), pages 162-189, March.
- Prat, A., 1998. "Campaign Spending with Office-Seeking Politicians, Rational Voters and Multiple Lobbies," Discussion Paper 1998-123, Tilburg University, Center for Economic Research.
- Arye L. Hillman & John G. Riley, 1987.
"Politically Contestable Rents and Transfers,"
UCLA Economics Working Papers
452, UCLA Department of Economics.
- Yeon-Koo Che & Ian L. Gale, 2006.
"Caps on Political Lobbying: Reply,"
American Economic Review,
American Economic Association, vol. 96(4), pages 1355-1360, September.
- Todd Kaplan, 2001.
"All-Pay Auctions with Variable Rewards,"
0109, Exeter University, Department of Economics.
- Drazen, Allan & Limao, Nuno & Stratmann, Thomas, 2007.
"Political contribution caps and lobby formation: Theory and evidence,"
Journal of Public Economics,
Elsevier, vol. 91(3-4), pages 723-754, April.
- Allan Drazen & Nuno Limão & Thomas Stratman, 2004. "Political Contribution Caps and Lobby Formation: Theory and Evidence," NBER Working Papers 10928, National Bureau of Economic Research, Inc.
- Andrew Schotter & Allan Corns, 1999.
"Can Affirmative Action Be Cost Effective? An Experimental Examination of Price-Preference Auctions,"
American Economic Review,
American Economic Association, vol. 89(1), pages 291-305, March.
- Corns, Allan & Schotter, Andrew, 1996. "Can Affirmative Action be Cost-Effective? An Experimental Examination of Price-Preference Auctions," Working Papers 96-02, C.V. Starr Center for Applied Economics, New York University.
- Qiang Fu, 2006. "A Theory of Affirmative Action in College Admissions," Economic Inquiry, Western Economic Association International, vol. 44(3), pages 420-428, July.
- Yildirim, Huseyin, 2005. "Contests with multiple rounds," Games and Economic Behavior, Elsevier, vol. 51(1), pages 213-227, April.
- Fang, Hanming, 2002. "Lottery versus All-Pay Auction Models of Lobbying," Public Choice, Springer, vol. 112(3-4), pages 351-371, September.
- Todd R. Kaplan & David Wettstein, 2006. "Caps on Political Lobbying: Comment," American Economic Review, American Economic Association, vol. 96(4), pages 1351-1354, September.
When requesting a correction, please mention this item's handle: RePEc:ucn:wpaper:200619. 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: (Nicolas Clifton)
If references are entirely missing, you can add them using this form.