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Author:Damania, R.
Fredriksson, P.
Title:On the formation of industry lobby groups
Journal:Journal of Economic Behavior and Organization
2000 : APR, VOL. 41:4, p. 315-335
Index terms:ECONOMIC BEHAVIOUR
ORGANIZATION
INDUSTRIES
Language:eng
Abstract:This paper provides a step towards a more complete theory of lobbying, extending the menuauction model of Grossman and Helpman. A new explanation is proposed for why more concentrated industries more easily overcome the free-rider problem inherent in political collective auction. Instead of focusing on transactions costs as Olson, the authors show that more collusive industries with higher collusive profits have a greater incentive to form lobby groups and to contribute to industry lobbying.
SCIMA record nr: 211425
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