Endogenous Lobbying

In this paper, we present a citizen candidate model of representative democracy with endogenous lobbying. We find that lobbying induces policy compromise and always affects equilibrium policy outcomes It; particular, even though the policy preferences of lobbies are relatively extreme lobbying biases the outcome of the political process toward the center of the policy space, and extreme policies cannot emerge in equilibrium. Moreover, in equilibrium, not all lobbies participate in the policy making process.

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Paper Number
01-055
Year
2001