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Author:Baldwin, R.E.
Robert-Nicoud, F.
Title:Entry and asymmetric lobbying: why governments pick losers
Journal:Journal of the European Economic Association
2007 : SEP, VOL. 5:5, p. 1064-4093
Index terms:government
pressure groups
Freeterms:lobbying
Language:eng
Abstract:Governments frequently intervene to support domestic industries, but a surprising amount of this support goes to ailing sectors. In this paper, this is explained with a lobbying model that allows for entry and sunk costs. In specific, policy is influenced by pressure groups that incur lobbying expenses to create rents.
SCIMA record nr: 270006
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