IDEAS home Printed from https://ideas.repec.org/p/dia/wpaper/dt201003.html
   My bibliography  Save this paper

Political contributions to influence consumers: the example of the u.s. drug reimportation debate

Author

Listed:
  • Anne Boring

    (Université Paris-Dauphine, LEDa, IRD, UMR225-DIAL, Paris)

Abstract

To reduce pharmaceutical prices, some legislators have been trying to pass bills authorizing the reimportation of prescription drugs to the United States. Pharmaceutical companies oppose reimportation, by elaborating a message (foreign drugs are of lower quality than domestic drugs) to influence legislators and their constituents. The industry gives contributions to legislators to spread its anti-reimportation message. The amount it gives depends on legislators’ and constituents’ characteristics. The legislators who receive the most are those whose constituents are most likely to oppose reimports. _________________________________ Afin de réduire les prix des produits pharmaceutiques, des législateurs tentent depuis plusieurs années de faire passer des lois qui autoriseraient la ré-importation de médicaments aux Etats-Unis. Les entreprises pharmaceutiques s’opposent aux ré-importations en élaborant un argument pour influencer les législateurs et leurs électeurs. Ici, l’argument est que les médicaments vendus à l’étranger sont de moins bonne qualité que ceux vendus aux Etats- Unis. L’industrie pharmaceutique finance les législateurs américains pour diffuser ce message contre les ré-importations. Le montant qu’elle donne dépend des caractéristiques des législateurs et de leurs électeurs. Les législateurs qui reçoivent le plus de financement sont ceux dont les électeurs ont le plus de chances d’être opposés aux ré-importations.

Suggested Citation

  • Anne Boring, 2010. "Political contributions to influence consumers: the example of the u.s. drug reimportation debate," Working Papers DT/2010/03, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201003
    as

    Download full text from publisher

    File URL: https://dial.ird.fr/wp-content/uploads/2021/10/2010-03-Political-contributions-to-influence-consumers-the-example-of-the-u.s.-drug-reimportation-debate.pdf
    File Function: First version, 2010
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Omer Gokcekus & Mike Adams & Henry Grabowski & Edward Tower, 2006. "How Did The 2003 Prescription Drug Re‐Importation Bill Pass The House?," Economics and Politics, Wiley Blackwell, vol. 18(1), pages 27-45, March.
    2. Stephen Ansolabehere & John M. de Figueiredo & James M. Snyder Jr, 2003. "Why is There so Little Money in U.S. Politics?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 105-130, Winter.
    3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    4. Yeon-Koo Che & Ian L. Gale, 2008. "Caps on Political Lobbying," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 337-345, Springer.
    5. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    6. Stephen Coate, 2004. "Political Competition with Campaign Contributions and Informative Advertising," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 772-804, September.
    7. Wright, Donald J., 2004. "The drug bargaining game: pharmaceutical regulation in Australia," Journal of Health Economics, Elsevier, vol. 23(4), pages 785-813, July.
    8. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    9. Valérie Paris & Elizabeth Docteur, 2006. "Pharmaceutical Pricing and Reimbursement Policies in Canada," OECD Health Working Papers 24, OECD Publishing.
    10. Austen-Smith, David, 1995. "Campaign Contributions and Access," American Political Science Review, Cambridge University Press, vol. 89(3), pages 566-581, September.
    11. Baldwin, Robert E & Magee, Christopher S, 2000. "Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills," Public Choice, Springer, vol. 105(1-2), pages 79-101, October.
    12. Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-1187, December.
    13. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, University Library of Munich, Germany.
    14. Hall, Richard L. & Deardorff, Alan V., 2006. "Lobbying as Legislative Subsidy," American Political Science Review, Cambridge University Press, vol. 100(1), pages 69-84, February.
    15. Levitt, Steven D, 1994. "Using Repeat Challengers to Estimate the Effect of Campaign Spending on Election Outcomes in the U.S. House," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 777-798, August.
    16. Anis, Aslam H. & Wen, Quan, 1998. "Price regulation of pharmaceuticals in Canada," Journal of Health Economics, Elsevier, vol. 17(1), pages 21-38, January.
    17. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers Archive 11375, Iowa State University, Department of Economics.
    18. Gene M. Grossman & Elhanan Helpman, 2002. "Special Interest Politics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262571676, April.
    19. Wright, John, 2004. "Campaign Contributions and Congressional Voting on Tobacco Policy, 1980–2000," Business and Politics, Cambridge University Press, vol. 6(3), pages 1-26, December.
    20. Timpone, Richard J., 1998. "Structure, Behavior, and Voter Turnout in the United States," American Political Science Review, Cambridge University Press, vol. 92(1), pages 145-158, March.
    21. Bresnahan, Timothy F, 1987. "Competition and Collusion in the American Automobile Industry: The 1955 Price War," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 457-482, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/4296 is not listed on IDEAS
    2. Laurent Bouton & Micael Castanheira & Allan Drazen, 2024. "A Theory of Small Campaign Contributions," The Economic Journal, Royal Economic Society, vol. 134(662), pages 2351-2390.
    3. Bombardini, Matilde & Trebbi, Francesco, 2011. "Votes or money? Theory and evidence from the US Congress," Journal of Public Economics, Elsevier, vol. 95(7), pages 587-611.
    4. Cotton, Christopher, 2012. "Pay-to-play politics: Informational lobbying and contribution limits when money buys access," Journal of Public Economics, Elsevier, vol. 96(3), pages 369-386.
    5. Drazen, Allan & Limao, Nuno & Stratmann, Thomas, 2007. "Political contribution caps and lobby formation: Theory and evidence," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 723-754, April.
    6. Cotton, Christopher, 2009. "Should we tax or cap political contributions? A lobbying model with policy favors and access," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 831-842, August.
    7. Cotton, Christopher, 2007. "Informational Lobbying and Competition for Access," MPRA Paper 1842, University Library of Munich, Germany.
    8. Giacomo A. M. Ponzetto & Maria Petrova & Ruben Enikolopov, 2008. "The Dracula effect: voter information and trade policy," Economics Working Papers 1296, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2020.
    9. Thomas Groll & Christopher J. Ellis, 2017. "Repeated Lobbying By Commercial Lobbyists And Special Interests," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1868-1897, October.
    10. Hylke Vandenbussche & Maurizio Zanardi, 2008. "What explains the proliferation of antidumping laws? [‘Antidumping Laws in the US; Use and Welfare Consequences’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 94-138.
    11. Giacomo Ponzetto, 2008. "Asymmetric information and trade policy," Economics Working Papers 1253, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2010.
    12. Richard Damania & Per Fredriksson & Thomas Osang, 2004. "Collusion, Collective Action and Protection: Theory and Evidence," Public Choice, Springer, vol. 121(3), pages 279-308, February.
    13. Matilde Bombardini & Francesco Trebbi, 2020. "Empirical Models of Lobbying," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 391-413, August.
    14. Michael M. Bechtel & Roland Füss, 2010. "Capitalizing on Partisan Politics? The Political Economy of Sector‐Specific Redistribution in Germany," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(2‐3), pages 203-235, March.
    15. Gawande, Kishore & Krishna, Pravin & Olarreaga, Marcelo, 2009. "What Governments Maximize and Why: The View from Trade," International Organization, Cambridge University Press, vol. 63(3), pages 491-532, July.
    16. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Protection for sale or surge protection?," European Economic Review, Elsevier, vol. 53(6), pages 675-688, August.
    17. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Is protection really for sale? A survey and directions for future research," International Review of Economics & Finance, Elsevier, vol. 18(2), pages 181-191, March.
    18. Willmann, Gerald, 2003. "Why Legislators are Protectionists: The Role of Majoritarian Voting in Setting Tariffs," Economics Working Papers 2003-10, Christian-Albrechts-University of Kiel, Department of Economics.
    19. Thomas Groll & Maggie McKinley, 2015. "Modern Lobbying: A Relationship Market," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(3), pages 15-22, October.
    20. Thomas Groll & Maggie McKinley, 2015. "Modern Lobbying: A Relationship Market," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(03), pages 15-22, October.
    21. Lake, James, 2015. "Revisiting the link between PAC contributions and lobbying expenditures," European Journal of Political Economy, Elsevier, vol. 37(C), pages 86-101.

    More about this item

    Keywords

    political contributions; lobbying; drug reimportation; pharmaceutical industry; protectionism; financement politique; lobbying; ré-importations; médicaments; industrie pharmaceutique; protectionnisme.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dia:wpaper:dt201003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Loic Le Pezennec (email available below). General contact details of provider: https://edirc.repec.org/data/diallfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.