Abstract

This article explores the logic of political competition between interest groups. It is shown how a general model of group allocation of resources can be simplified to be equivalent with the well-known rent-seeking game model of government resource allocation. After the existence of equilibrium is investigated, comparative statics results illustrating the impact of changes in the players' preferences are presented. The analysis is conducted within the framework of a two person game and an ‘imperfectly discriminating’ government response to interest group pressure. The properties of Nash and Stackelberg equilibria are discussed.

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