Political Parties and Rent-seeking through Networks
Topi Miettinen () and
Panu Poutvaara ()
Papers on Strategic Interaction from Max Planck Institute of Economics, Strategic Interaction Group
Anti-corruption laws forbid selling nominations to public jobs. Even if bribing is ruled out, those interested in the nominations may invest in good relationships with the nominators. This provides a legal way to influence the decision. Such networking is costly, however. Thus, rent-seeking results in excessive networking. We argue that efficiency may be improved if political parties interfere with the nominations. Political parties may reduce wasteful networking, thanks to exclusive membership contracts. Parties can require that politicians belonging to the party promote the nomination of other party members, thus, reducing incentives to cultivate inter-party connections.
Keywords: Political parties; Political Nominations; Rent-seeking; Connections; Networks; Two-sided Platforms (search for similar items in EconPapers)
JEL-codes: D72 D85 H8 L14 (search for similar items in EconPapers)
Pages: 29 pages
New Economics Papers: this item is included in nep-cdm, nep-net, nep-pol and nep-soc
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Working Paper: Political Parties and Rent-seeking through Networks (2006)
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