Policymaking under Influence

Abstract Policymaking is an arduous process and politicians often fail to change the status quo despite their best efforts. I introduce the notion of influence players, an umbrella term for political actors such as interest groups or legislators, who can positively or negatively affect policy proposals’ odds of implementation by exerting costly effort. Analyzing a parsimonious model of policymaking with an imperfectly effective politician and an influence player, I show how and when threats, opposition, or support can affect policymaking, depending on the influence player’s cost of effort and effectiveness. My comparative static analysis shows that, under certain conditions, influence players can be harmed by being more effective or having a lower cost of effort, through these changes’ consequences on their bargaining position. I conclude my analysis by discussing the perspectives the model offers on legislative politics and special interest politics.

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Publication Details

Journal
The Journal of Law Economics and Organization
Published
2025-02-13
DOI
https://doi.org/10.1093/jleo/ewaf001
Primary Topic
Political Influence and Corporate Strategies
Type
article
Field-Weighted Citation Impact
0.00
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article

Policymaking under Influence

Benjamin Blumenthal
The Journal of Law Economics and Organization
Political Influence and Corporate Strategies
article

Policymaking under Influence

Benjamin Blumenthal
article en

Abstract

Abstract Policymaking is an arduous process and politicians often fail to change the status quo despite their best efforts. I introduce the notion of influence players, an umbrella term for political actors such as interest groups or legislators, who can positively or negatively affect policy proposals’ odds of implementation by exerting costly effort. Analyzing a parsimonious model of policymaking with an imperfectly effective politician and an influence player, I show how and when threats, opposition, or support can affect policymaking, depending on the influence player’s cost of effort and effectiveness. My comparative static analysis shows that, under certain conditions, influence players can be harmed by being more effective or having a lower cost of effort, through these changes’ consequences on their bargaining position. I conclude my analysis by discussing the perspectives the model offers on legislative politics and special interest politics.

The Journal of Law Economics and OrganizationVol. 42(1)
ETH Zurich (CH)
Openalex Percentile: Top 93%
Political Influence and Corporate Strategies
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