Lobbying of Firms by Voters

Identifier:  PC:4785

Handle: https://hdl.handle.net/20.500.11797/PC4785

Authors:  Glazerz, Amihai; Dur, Robert; Dahm, Matthias

Abstract:
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.