We examine the effects of the interaction between lobbying and legislative bargaining on policy formation. Two systems are considered: a US-style congressional system and a European-style parliamentary system. First we show that the policies generated are not intermediate between policies that...

Economic policymaking in modern democracies generates a great deal of special-interest politics. In policy areas such as finance, trade policy, and regulation, policy decision create benefits for well-defined groups with the cost borne by society at large. Given the difficulties with the...