The lobbying process is modelled as an auction with externalities in which lobbies bid to get implemented thei most-prefered policy. Further more, the government may influence the lobbying process itself by biasing the auction among organized interests. We identify the following trade-off :...

Using the spatial theory of voting, this paper describes an institutional structure where there are two branches of the government: the executive, elected by plurality rule, and the legislative elected by proportional rule. The resulting policy outcome is described through a compromise between...