A formal theory of lobbying behavior

Abstract

This paper analyses strategic lobbying behaviour under the assumption of disorganized opposition. A dynamic programming approach is used. The optimal rate of lobbying expenditure is shown to be an increasing function of time. A specific example is computed to determine the influence of various parameters. Next, the case of lobbying against an active counterlobby is considered in a dynamic game-theoretic framework. The Nash equilibrium rates of lobbying expenditure are computed for a specific example with symmetric players. The equilibrium rates of expenditure for the two lobbyists may be either everywhere increasing, everywhere decreasing, or single peaked as a function of time. In addition, some comparative statics results are reversed relative to those of the disorganized opposition model.

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