The optimality of ignoring lobbyists

Open Access
Authors
Publication date 2007
Number of pages 6
Publisher Amsterdam: University of Amsterdam, School of Economics
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract For situations where interest groups compete in an all-pay auction for a political prize, we derive conditions under which the government optimally balances the costs and the benefits of lobbying by ignoring all lobbying activities and by always assigning the prize to the interest group with the highest ex ante value for it.
Document type Working paper
Language English
Published at http://www1.feb.uva.nl/pp/bin/240fulltext.pdf
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240fulltext.pdf (Submitted manuscript)
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