This paper develops a common agency problem using a two stages menu auction game to show how pressure groups can aid in deciding how much public good should be provided. By sorting people into different pressure groups that represent the individuals’ preferences for the public good, the interaction among the pressure groups is an important element that could improve the provision of public goods. This paper sketches a very simple mechanism to provide a general contribution to finance a public good. In this model, the presence of pressure groups improves the undersupply of public goods typical in voluntary contribution models, while avoiding the distortionary effects of non-lump-sum transfers of the involuntary contributions models.
Agregar etiquetas para Do pressure groups improve public goods provision?: a social choice approach = ¿Mejoran los grupos de presión la provisión de bienes públicos?: una aproximación desde la elección social