Publications

Discussion Papers

Lobbying of Firms by Voters

Matthias Dahm, Universitat Rovira i Virgili; Robert Dur, Erasmus University Rotterdam, CESifo, IZA; Amihai Glazer, University of California, Irvine

# 09-068/1

A firm may induce voters or elected politicians to support a policy it favors by suggesting that it is more likely to invest in a district whose voters or representatives support the policy. In equilibrium, no one vote may be decisive, and the policy may gain strong support though the majority of districts suffer from adoption of the program. When votes reveal information about the district, the firm's implicit promise or threat can be credible.

Keywords: Lobbying, voting, special interests, influence
Classification-JEL: C72, D72, D78

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