Political Competition

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Political Competition

• The Role of Interest Groups

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STRUCTURED PLURALISM

• Individuals
• with interests that derive from their assets,
  endowments, preferences
• with interests that derive from their offices and
  the requirements of success in office
• WHERE YOU STAND DEPENDS ON WHERE YOU SIT

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• We must start with individuals
• when we talk about collectivities, like labor,
  or property owners, or even homeowners, we are
  being a little bit sloppy. We are implying that
  these folks all have identical wants and
  interests and are prepared to do something about
  it
• Individuals have multiple interests
• They may join with others to advance some of
  those interests thru political action groups

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Competitive political analysis looks at the costs
and benefits of group action and predicts likely
outcomes

• Benefits of GROUP ACTION depend on
• payoff if successful
• markets determine the payoffs accruing to
  alternative rules/policies
• the likelihood of success
• receptivity of institutions, opposition

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• Costs of GROUP ACTION depend on
• the costs of organization
• free rider problem
• by-product theory of group organization
• ORGANIZING IS EASIER WHEN PAYOFFS ARE LARGE,
  GROUPS ARE SMALL, AND FREE-RIDERS CAN BE
  SANCTIONED

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• DAIRY FARMERS ARE MORE INFLUENTIAL THAN RANCHERS
  BECAUSE THEY ARE BETTER ORGANIZED -- WHY ARE THEY
  BETTER ORGANIZED?

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• INDIVIDUAL PAYOFFS ARE LARGE
• NUMBERS ARE NOT SMALLER, BUT DAIRIES TEND TO BE
  SPATIALLY CONCENTRATED
• FREE-RIDERS CAN BE SANCTIONED

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Nature of Political Competition
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