Politician preferences and caps on political lobbying
|Title:||Politician preferences and caps on political lobbying||Authors:||Pastine, Ivan
|Permanent link:||http://hdl.handle.net/10197/700||Date:||Nov-2006||Online since:||2008-12-03T15:16:43Z||Abstract:||This paper extends Che and Gale (1998) by allowing the incumbent politician to have a preference for the policy position of one of the lobbyists. The effect of a contribution cap is analyzed where two lobbyists contest for a political prize. The cap always helps the lobbyist whose policy position is preferred by the politician no matter whether it is the high-valuation or the low-valuation contestant. In contrast to Che and Gale, once the cap is binding a more restrictive cap always reduces expected aggregate contributions. However, the politician might support the legislation of a barely binding cap. When politician policy preferences perfectly reflect the will of the people, a more restrictive cap is always welfare increasing. When lobbyist’s valuations completely internalize all social costs and benefits, a cap is welfare improving if and only if the politician favors the high-value policy. Even a barely binding cap can have significant welfare consequences.||Type of material:||Working Paper||Publisher:||University College Dublin. School Of Economics||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP06/19||Copyright (published version):||2006 School Of Economics, University College Dublin||Keywords:||All-pay auction; Campaign finance reform; Explicit ceiling||Subject LCSH:||Political campaigns--Mathematical models
Noncooperative games (Mathematics)
|Other versions:||http://www.ucd.ie/economics/research/papers/2006/WP06.19.pdf||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.