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Competitive lobbying in the influence production process and the use of spatial econometrics in lobbying research

Author

Listed:
  • Benjamin C. K. Egerod

    (Copenhagen Business School)

  • Wiebke Marie Junk

    (University of Copenhagen)

Abstract

Much of the lobbying process is inherently competitive: when lobbyists with opposing goals attempt to move outcomes in their preferred direction, successful lobbying by one actor will disadvantage opposing actors. This article theorizes and quantifies the indirect form of influence that competing lobbying actors exert on each other. While existing theories of competitive lobbying have focused on legislation, we argue that all stages of the lobbying process involve competition. Our findings make two contributions to the study of lobbying influence. First, using spatial econometrics, we present the first estimates of how the success of one lobbying actor is shaped by the lobbying activities of opposing actors. Second, we study competition in three diverse empirical settings that capture three different stages of the lobbying process: (1) lobbying camps favoring opposite legislative outcomes in five European countries, (2) US lobbying firms competing over client resources, and (3) corporations competing for administrative trade barriers in 19 World Trade Organization member countries. The results reveal important insights about how interdependence among lobbyists conditions their effectiveness. Our application of spatial techniques to model interdependence between actors is useful for all scholars who want to take competitive or collaborative diffusion mechanisms into account in studies of lobbying and public policy.

Suggested Citation

  • Benjamin C. K. Egerod & Wiebke Marie Junk, 2022. "Competitive lobbying in the influence production process and the use of spatial econometrics in lobbying research," Public Choice, Springer, vol. 191(1), pages 193-215, April.
  • Handle: RePEc:kap:pubcho:v:191:y:2022:i:1:d:10.1007_s11127-022-00962-w
    DOI: 10.1007/s11127-022-00962-w
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    References listed on IDEAS

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    Cited by:

    1. Wei-Fong Pan, 2023. "Does a firm’s lobbying activity respond to its peers’ lobbying activity?," Public Choice, Springer, vol. 194(3), pages 297-324, March.
    2. Egerod, Benjamin C. K. & Aaskoven, Lasse, 2024. "Why don't firms lobby? How information shapes the market for lobbying services," Working Papers 347, 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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    More about this item

    Keywords

    Competitive lobbying; Political influence; Diffusion; Spatial econometrics; Lobbying the bureaucracy;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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