Economics of Lobbying

I was familiar with the dynamics of the all-pay auction (I always called it the Wargames auction -- the only winning move is not to play).  I had never thought of it as a good analog for lobbying expenditures, but it makes a lot of sense once David Zetland made the point.  Good video at the link.

7 Comments

  1. ElamBend:

    the link is bad

  2. eddie:

    This is probably what he's referring to:

    http://www.youtube.com/watch?v=QN_kt97w7Wg

  3. feeblemind:

    My PC concurs with Elam Bend: Invalid url.

  4. DrTorch:

    I was unfamiliar w/ this all-pay auction concept. Interesting. The analogy to lobbying makes complete sense.

    Moreover, here's info on people trying to make money on the concept

    http://freakonomics.blogs.nytimes.com/2008/12/16/an-all-pay-auction/

  5. LoneSnark:

    EconTalk did an entire podcast with Mike Munger on how this type of auction relates to government attempts at giving away free money.

  6. David Zetland:

    @LoneSnark -- thanks for the x-ref. I added it (plus more comments) to this post: http://aguanomics.com/2009/11/more-on-lobbying-and-rent-seeking.html

    @All -- yes, you got the right link 🙂