The Dynamics of Lobbying under Uncertainty: On Political Liberalization in Arab Countries

Raouf Boucekkine (), Fabien Prieur and Klarizze Puzon ()
Additional contact information
Klarizze Puzon: LAMETA, Universite Montpellier I., http://www.lameta.univ-montp1.fr/spip.php?article703&lang=en

No 1317, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We consider a framework à la Wirl (1994) where political liberalization is the outcome of a lobbying differential game between a conservative elite and a reformist group, the former player pushing against political liberalization in opposition to the latter. In contrast to the benchmark model, we introduce uncertainty. We consider the typical case of an Arab oil exporter country where oil rents are fiercely controlled by the conservative elite. We assume that the higher the oil rents, the more reluctant to political liberalization the elite is. Two states of nature are considered (high vs low resource rents). We then compute the Market-perfect equilibria of the corresponding piecewise deterministic differential game. It is shown that introducing uncertainty in this manner increases the set of strategies compared to Wirl's original setting. In particular, it is shown that the cost of lobbying might be significantly increased under uncertainty with respect to the benchmark. This ultimately highlights some specificities of the political liberalization at stake in Arab countries and the associated risks.

Keywords: Rent-seeking; lobbying; natural resources; Arab countries; piecewise deterministic differential games (search for similar items in EconPapers)
JEL-codes: C61 C73 D72 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013-03-15
New Economics Papers: this item is included in nep-ara, nep-cdm, nep-ene, nep-gth and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2013_-_nr_17.pdf (application/pdf)

Related works:
Chapter: The Dynamics of Lobbying Under Uncertainty: On Political Liberalization in Arab Countries (2014)
Working Paper: The Dynamics of Lobbying under Uncertainty: On Political Liberalization in Arab Countries (2014)
Working Paper: The Dynamics of Lobbying under Uncertainty: On Political Liberalization in Arab Countries (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1317

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().