Policymaking under Influence

Policymaking is an arduous process and politicians often fail to change the status quo despite their best efforts. I introduce the notion of influence players, an umbrella term for political actors such as interest groups or legislators, who can positively or negatively affect policy proposals’ odds of implementation by exerting costly effort. Analysing a parsimonious model of policymaking with an imperfectly effective politician and an influence player, I show how and when threats, opposition, or support can affect policymaking, depending on the influence player’s cost of effort and effectiveness. My comparative static analysis shows that, under certain conditions, influence players can be harmed by being more effective or having a lower cost of effort, through these changes’ consequences on their bargaining position. I conclude my analysis by discussing the perspectives the model offers on legislative politics and special interest politics.