Please use this identifier to cite or link to this item:
Michaelis, Peter
Year of Publication: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1994
Series/Report no.: 
Kiel Working Paper No. 626
Empirical studies on industry lobbying sometimes reveal that certain firms within an industry behave atypically in that they promote cost driving regulations like, e.g., environmental standards. For analysing this phenomenon of 'strategic lobbying1, the present paper combines a heterogeneous Cournot-Nash oligopoly with a model of endogenous policy making where two parties compete for campaign contributions spent by the regulated industry. It is shown that the existence of potential regulation gains (and consequently the incentive for strategic lobbying activities) depends on the relationship between possible cost differentials and the market structure of the industry under consideration. Based on these results, the paper examines the effects of strategic lobbying for two different scenarios. The first scenario assumes that only one firm is engaged in lobbying, whereas the second scenario looks at simultaneous (competing) lobbying activities by several firms.
Document Type: 
Working Paper
Document Version: 
Digitized Version

Files in This Item:
592.91 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.