ABSTRACT

Political rent-seeking and lobbying activities play an important role in modern societies. 1 The greater the participation of political and bureaucratic organs in the economic life of a society, the greater the incentives are to engage in lobbying activities, since the potential rewards to a successful lobbyist depend directly on the size of the public cake. This problem has been analyzed by Wickström (1987), who shows within a simple noncooperative game that the number of active pressure groups in a society as well as the volume of their outlays on lobbying activities are an increasing function of the size of the public cake.