The Larger the Better? The Role of Interest-Group Size in Legislative Lobbying

Maik Schneider

No 10/126, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: We develop a model of legislative lobbying where policy proposals are endogenous. We show that a policy proposer with preferences tilted towards one lobby may be induced by an increase in that interest group's size to propose policies geared towards the opposing lobby. Hence, a larger lobby size can have adverse effects on policy outcomes for this same lobby. This provides another rationale as to why some interests do not organize. Moreover, we find that a second-mover advantage in Groseclose and Snyder (1996)-type lobbying models with exogenous policy proposals can turn into a second-mover disadvantage when the proposal is endogenous.

Keywords: legislative lobbying; vote buying; legislatures; interest groups; political economy (search for similar items in EconPapers)
JEL-codes: D72 P16 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2010-03
New Economics Papers: this item is included in nep-cdm and nep-pol
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