Lobbying: Buying and utilizing access

Wolfgang Mayer and Sudesh Mujumdar

No 2012-15, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper introduces an alternative to the lobbying literature's standard assumption that money buys policies. Our model - in which influence-seeking requires both money to buy access and managerial time to utilize access - offers three significant benefits. First, it counters criticism that the money-buys-policies assumption is at odds with reality. Second, its much stronger lobbying incentives weaken the free-rider problem and raise incentives for lobby formation. Third, the model yields testable hypotheses on: the determinants of lobbying incentives; the number of lobbying firms in an industry; and the impact on industry lobbying by the size distribution of firms, contribution limits on firms, world price changes, and the ability to adjust labor employment.

Keywords: lobbying; free-rider problem; size-distribution-of-firms; world-price; labor-market-flexibility (search for similar items in EconPapers)
JEL-codes: F16 H0 L1 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-bec
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201215

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