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We investigate policy reform in a model in which there are both rent seeking and lobbying activities. These two activities involve similar skills, so a reform which reduces rents will cause a shift into lobbying. Also, lobbying is subject to a free-rider problem, so the marginal return to the...
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The effect of changes in industry structure on the ability to maintain a cooperative level of tariff lobbying are analyzed in a repeated game setting in which a simple trigger strategy is the enforcement mechanism. The difficulty of maintaining cooperation is identified with the minimum discount...
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The effect of changes in industry structure on the ability to maintain a cooperative level of tariff lobbying are analyzed in a repeated game setting in which a simple trigger strategy is the enforcement mechanism. The difficulty of maintaining cooperation is identified with the minimum discount...
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Olson (1965) has argued that one way large groups overcome the free-rider problem is through by-product lobbying. The by-product firm sells a private good to potential members of the interest group and finances lobbying with its profits. It has been argued that by-product lobbying firms cannot...
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