The proposal of an inefficient policy usually stimulates a political struggle between the affected interest groups. The resulting wasteful lobbying activities may reduce welfare, even if the proposed policy is not approved. In this paper we show that sufficient asymmetry in payoffs not only...

We analyze how the standard results in lobbying theory change when one side has a second instrument at its disposal. We look at the effect concessions by one side have on the outcome in a Nash and a Stackelberg game. Copyright 2001 by Kluwer Academic Publishers

Using a public-policy application of Tullock's two-player rent-seeking contest, this paper focuses on the relationship between the aggregate expected utility of the players and their asymmetric valuations. In our game these valuations are the players' payoffs in the two possible states of...