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Endogenous Lobbying

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  • Leonardo Felli
  • Antonio Merlo

Abstract

In this article, we present a citizen-candidate model of representative democracy with endogenouslobbying.We find that lobbying induces policy compromise and always affects equilibrium policy outcomes. In particular, even though the policy preferences of lobbies are relatively extreme, lobbying biases the outcome of the political process toward the center of the policy space, and extreme policies cannot emerge in equilibrium. Moreover, in equilibrium, not all lobbies participate in the policy-making process. (JEL: D72, D74, D78) Copyright (c) 2006 by the European Economic Association.
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Suggested Citation

  • Leonardo Felli & Antonio Merlo, "undated". "Endogenous Lobbying," CARESS Working Papres 00-03, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  • Handle: RePEc:wop:pennca:00-03
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    File URL: http://www.ssc.upenn.edu/econ/CARESS/CARESSpdf/00-03.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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