We present a dynamic model of the interaction between interest groupsand policymakers, featuringendogenous interest group formation. We show that complicated dynamicpatterns in economicpolicies may arise once interest group formation is taken intoaccount.

Abstract. This paper studies the effect of power asymmetry on resolution of social dilemmas in repeated play of linear public good games. The experiment uses a 2X2 design that crosses power symmetry or asymmetry in games with positive (provision) or negative (appropriation) externalities. Our...