It is widely believed that the free-rider problem and the incentives to build minimum winning coalitions cause politics to reflect the preferences of special interest groups. Nevertheless, if voters do not know all the positions of all the candidates, then a candidate who proposes policies that...

A firm which lobbies government for a change in policy, say an import tariff, can increase its profits in two ways. First, the policy can increase the profits of all firms in the industry. This effect therefore involves a free-rider problem. Second, a firm's lobbying expenditures may signal...

When strategic complementarities lead to the existence of multiple equilibria, a change in control of government may lead to changes in economic behavior by consumers or firms even if the different parties pursue the same policies. The existence of multiple equilibria, however, is not necessary...

Public officials often have little incentive to spend time and effort proposing policies that benefit others. When, however, some public policies generate rents to these officials, rent seeking in politics can motivate them to provide public goods. We consider the motivational effects of rent...