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The Price of Influence in an Interest-Group Economy

Author

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  • W. MARK CRAIN

    (George Mason University)

  • ROBERT D. TOLLISON

    (George Mason University)

  • THOMAS H. DEATON

    (General Telephone and Electric Company)

Abstract

The size and number of political interest groups is analyzed using the firm-industry framework of standard microeconomic theory. The model allows for the entry and exit of interest groups in the interest-group industry, as well as adjustments in the size of individual interest groups. The structural characteristics of the market for legislation (i.e., the costs of procuring influence) drives these adjustments in political coalitions and interest groups. Empirical evidence on the relationship of coalition adjustments to changes in various characteristics of legislatures is provided using data on U.S. states.

Suggested Citation

  • W. Mark Crain & Robert D. Tollison & Thomas H. Deaton, 1991. "The Price of Influence in an Interest-Group Economy," Rationality and Society, , vol. 3(4), pages 437-449, October.
    • Handle: RePEc:sae:ratsoc:v:3:y:1991:i:4:p:437-449
    DOI: 10.1177/1043463191003004004
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    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
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    4. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
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    6. Landes, William M & Posner, Richard A, 1975. "The Independent Judiciary in an Interest-Group Perspective," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 875-901, December.
    7. Crain, W Mark & Leavens, Donald R & Tollison, Robert D, 1986. "Final Voting in Legislatures," American Economic Review, American Economic Association, vol. 76(4), pages 833-841, September.
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    Cited by:

    1. John Meadowcroft, 2014. "Exchange, unanimity and consent: a defence of the public choice account of power," Public Choice, Springer, vol. 158(1), pages 85-100, January.

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