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A Theory of Competition Among Pressure Groups for Political Influence

Gary S. Becker

University of Chicago

Quarterly Journal of Economics 1983

This paper presents a theory of competition among pressure groups for political influence. Political equilibrium depends on the efficiency of each group in producing pressure, the effect of additional pressure on their influence, the number of persons in different groups, and the deadweight cost of taxes and subsidies. An increase in deadweight costs discourages pressure by subsidized groups and encourages pressure by taxpayers. This analysis unifies the view that governments correct market failures with the view that they favor the politically powerful: both are produced by the competition for political favors.

DOI
10.2307/1886017
Volume
98 (3)
Pages
371
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