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Market Structure and Political Influence
Esty, Daniel Caves, Richard
Esty, Daniel
Caves, Richard
Abstract
This paper utilizes new data to evaluate the determinants of thc political influence of thirty-five manufacturing industries on the U.S. Congress during 1976-80. Several tneasures of itifluence serve to distillguish between political activity and success. Seller concentration and geopolitical dispersion increase both activity and success, but neither industry size nor leading-firm size proves significant. We test whether political expenditures facilitate obtaining the favors conferred on an industry by its market structure or by influence independent of that strurture; statistical inference strongly confirms both roles.