NDLI: How a firm can induce legislators to adopt a bad policy

Content Provider	Springer Nature Link
Author	Dahm, Matthias Dur, Robert Glazer, Amihai
Copyright Year	2012
Abstract	This paper shows why a majority of legislators may vote for a policy that benefits a firm but harms all legislators. The firm may induce legislators to support the policy by suggesting that it is more likely to invest in a district where voters or their representative support the policy. In equilibrium, no one vote may be decisive, so each legislator who seeks the firm’s investment votes for the policy, though all legislators would be better off if they all voted against the policy. And when votes reveal information about the district, the firm’s implicit promise or threat can be credible. Unlike influence mechanisms based on contributions or bribes, the behavior considered is time consistent and in line with the low campaign contributions by special interests.
Starting Page	63
Ending Page	82
Page Count	20
File Format	PDF
ISSN	00485829
Journal	Public Choice
Volume Number	159
Issue Number	1-2
e-ISSN	15737101
Language	English
Publisher	Springer US
Publisher Date	2012-08-31
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Lobbying Voting Special interests Credibility Public Finance & Economics Political Science
Content Type	Text
Resource Type	Article
Subject	Sociology and Political Science Economics and Econometrics

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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How a firm can induce legislators to adopt a bad policy