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Dynamic Commercial Lobbying

Author

Listed:
  • Thomas Groll
  • Christopher J. Ellis

Abstract

This study explains the observed repeated personal interactions between lobbyists and policymakers. The analysis uses a dynamic model of commercial lobbying in which citizens may hire lobbyists to present policy proposals on their behalf to policymakers. It is shown that repeated interactions with lobbyists simplify a policymaker’s information problem in the presence of unverifiable information provision and allow a solution to their contracting problem. The welfare implications of these interactions depend on whether the policymakers’ information or contracting problem predominates. Further, the policymaker’s information problem and financial contributions may actually improve social welfare in comparison to the full information outcome.

Suggested Citation

  • Thomas Groll & Christopher J. Ellis, 2013. "Dynamic Commercial Lobbying," CESifo Working Paper Series 4114, CESifo.
    • Handle: RePEc:ces:ceswps:_4114
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp4114.pdf
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    References listed on IDEAS

    as
    1. Groll, Thomas & Ellis, Christopher J., 2014. "A simple model of the commercial lobbying industry," European Economic Review, Elsevier, vol. 70(C), pages 299-316.
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    Cited by:

    1. Groll, Thomas & Ellis, Christopher J., 2014. "A simple model of the commercial lobbying industry," European Economic Review, Elsevier, vol. 70(C), pages 299-316.

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    More about this item

    Keywords

    dynamic lobbying; influence activities; information acquisition; financial contributions; commercial lobbying; political access; moral hazard;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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