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How Internal Constraints Shape Interest Group Activities: Evidence from Access-Seeking PACs

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  • LI, ZHAO

Abstract

Interest groups contribute much less to campaigns than legally allowed. Consequently, prevailing theories infer these contributions must yield minimal returns. I argue constraints on PAC fundraising may also explain why interest groups give little. I illuminate one such constraint: access-seeking PACs rely on voluntary donations from affiliated individuals (e.g., employees), and these PACs alienate donors with partisan preferences when giving to the opposite party. First, difference-in-differences analysis of real giving shows donors withhold donations to access-seeking PACs when PACs contribute to out-partisan politicians. Next, an original survey of corporate PAC donors demonstrates they know how their PACs allocate contributions across parties, and replicates the observational study in an experiment. Donors’ partisanship thus limits access-seeking PACs’ fundraising and influence. This provides a new perspective on why there is little interest group money in elections, and has broad implications for how partisan preferences and other internal constraints shape interest group strategy.

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  • Li, Zhao, 2018. "How Internal Constraints Shape Interest Group Activities: Evidence from Access-Seeking PACs," American Political Science Review, Cambridge University Press, vol. 112(4), pages 792-808, November.
    • Handle: RePEc:cup:apsrev:v:112:y:2018:i:04:p:792-808_00
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    Cited by:

    1. Gounopoulos, Dimitrios & Mazouz, Khelifa & Wood, Geoffrey, 2021. "The consequences of political donations for IPO premium and performance," Journal of Corporate Finance, Elsevier, vol. 67(C).
    2. Mazumder, Soumyajit & Yan, Alan, 2020. "What Do Americans Want From (Private) Government? Experimental Evidence Demonstrates that Americans Want Workplace Democracy," SocArXiv j9asz, Center for Open Science.
    3. Schnakenberg, Keith & Turner, Ian R, 2023. "Dark Money and Politician Learning," SocArXiv 3bzex, Center for Open Science.
    4. Schnakenberg, Keith & Schumock, Collin & Turner, Ian R, 2023. "Dark Money and Voter Learning," SocArXiv r562d, Center for Open Science.
    5. James Rockey & Nadia Zakir, 2021. "Power and the money, money and the power: A network analysis of donations from American corporate to political leaders," Discussion Papers 21-03, Department of Economics, University of Birmingham.
    6. Balán, Pablo & Dodyk, Juan & Puente, Ignacio, 2023. "Kin in the game: How family ties help firms overcome campaign finance regulation," Working Papers 330, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.

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