Baron (2001) - Theories of Strategic Nonmarket Participation
Revision as of 14:08, 12 October 2009 by imported>Ed
Reference
Baron, D. (2001), Theories of Strategic Nonmarket Participation: Majority-Rule and Executive Institutions, Journal of Economics and Management Strategy 10, 7-45. pdf
Introduction
Baron (2001) provides some theoretical foundations for client politics and interest group politics in both Majority Rule institutions and executive institutions.
Basic Definitions
- In Client politics the firm or interest group has no direct competition in its lobbying or influencing efforts.
- In Interest group politics two or more firms directly compete in their efforts to influence policy.
- Majority Rule institutions are legislatures or similar bodies that who require a majority vote to pass legislation. Thus Majority Rule institutions are synonymous with median vote type problems.
- Executive institutions are those in which a single individual, or a group of individuals that hare identical preference and so can be represented by a single representative agent, are empowered to choose and enact policy.