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Lobby Interaction and Trade Policy

Author

Listed:
  • Tatyana Chesnokova

    (School of Economics, University of Adelaide)

Abstract

The paper introduces lobby interaction in the ''protection for sale'' framework. Special interest groups provide unconditional contributions where the marginal contribution of a lobby is decreasing in the total sum collected by the government. In contrast to the ''protection for sale'' model, for a given proportion of capital owners in the organized sectors, an increase in the number of lobbies has an impact on trade policy. It is also shown that an increase in the number of lobbies has two opposite effects on each lobby's contribution: a competition effect which lowers a lobby's contribution and a political influence effect which tends to increase its contribution.

Suggested Citation

  • Tatyana Chesnokova, 2010. "Lobby Interaction and Trade Policy," School of Economics and Public Policy Working Papers 2010-04, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2010-04
    as

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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2010-04.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    lobbying; interest groups; trade policy; protection for sale;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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