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Grossman Helpman (2001) - Special Interest Politics Chapters 4 And 5 (view source)
Revision as of 19:17, 26 April 2010
, 19:17, 26 April 2010→One Lobby - Two States
:<math>(\theta_L + \delta) - \theta_L \le \theta_H - (\theta_L + \delta)\,</math>
:<math>\threfore therefore \delta \le \frac{\theta_H - \theta_L}{2}\,</math>
When the bias satisfies this criteria there is informative lobbying and we can have full relevation, however this is not the sole equilibrium. Suppose the policy maker distrusted the SIG, then the policy maker would implement:
