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Existence of equilibria in lobbying economies



Existence of equilibria in lobbying economies



Bulletin, Economic Development Center, Department of Economics/Department of Agricultural and Applied Economics, University of Minnesota (88-5): 29



Governments distort agricultural prices by setting price floors, etc. These distortions lead to an oversupply of agricultural commodities. In some markets, the government buys the excess supply at the legal price. Agents are guaranteed the announced price, and are free to make economic decisions based upon this guarantee. Moreover, the prices in these laws are the subject of determined and energetic lobbying efforts each time they are established.

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