In this paper, we consider strategic entry decisions in a two-player political transfer contest, i.e., the prize is a transfer from one lobby group to another. The size of the transfer depends on the lobbying effort of the political active lobby groups. We show that the entry decision involves a...

The purpose of this paper is to study formation of support and opposition to redistribution. We analyze a society with two groups of citizens and a government. The government distributes income from one group to the other in response to political pressure. The interaction between the groups is...