When the squeakiest wheel gets the most oil: Exploiting one's nuisance power

Didier Laussel () and Tanguy van Ypersele

European Economic Review, 2012, vol. 56, issue 8, 1593-1606

Abstract: In this paper, a lobby group or union may influence public policy because it is able, via a costly signal such as a boycott or a strike, to negatively impact the image of decision makers. The competence of a government is measured by its ability to do a lot with only a little money. Voters receive, through observing the level of public output, only a noisy signal of government's quality so that the lobby groups, which are better informed, may transmit to them more precise information about it.

Keywords: Lobby group; Union; Political economy (search for similar items in EconPapers)
JEL-codes: D72 D73 H11 J51 J52 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:8:p:1593-1606

DOI: 10.1016/j.euroecorev.2012.06.004

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