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Democracy, Lobbying and Economics

Author

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  • Žák Milan

    (University of Economics and Management, Prague, Czech Republic)

Abstract

The paper deals with the issue of lobbying, defined as a democratic means of promoting interests. The text tries to find answers to the problems in the current economic theory. The basic links are defined by using a simple graphic model, which are further examined by the SWOT analysis. The result is the knowledge that the basic coordination mechanism is the market – the information market. The role of government lies above all in creating a favourable institutional environment that does not interfere with spontaneous market relations. However, there are certain situations that the government could or should regulate. These situations are described by three hypothetical scenarios – a society without lobbying, a society where lobbing exists, but it is not transparent, and a society where lobbing is transparent, leading to a final discussion of possible directions and ways of its regulation.

Suggested Citation

  • Žák Milan, 2019. "Democracy, Lobbying and Economics," Review of Economic Perspectives, Sciendo, vol. 19(3), pages 193-210, September.
    • Handle: RePEc:vrs:reoecp:v:19:y:2019:i:3:p:193-210:n:3
    DOI: 10.2478/revecp-2019-0011
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    References listed on IDEAS

    as
    1. Acocella,Nicola, 2005. "Economic Policy in the Age of Globalisation," Cambridge Books, Cambridge University Press, number 9780521540384.
    2. Gordon C. Rausser & William E. Foster, 1990. "Political Preference Functions and Public Policy Reform," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 641-652.
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    More about this item

    Keywords

    Impact of Lobbying on Democracy; Public Choice; New Institutional Economy; New Political Economy;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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