Government intervention often gives rise to contests in which the possible "prizes" are determined by the status quo and some new public policy proposal. In this paper we study a general class of such two-player public policy contests and examine the effect of a change in the proposed policy, a...

In the two-stage political-economic game that we study public policy is the outcome of the interaction between interest groups and a two-tier government. Implementation of a policy proposed by a bureaucrat requires approval by an elected politician. The objective function of the bureaucrat...