Political Power and Market Power


We study the link between political influence and industrial concentration. A model of firm lobbying shows that concentration and regulation may be either strategic complements or substitutes. Using data for the past 20 years in the US, we study whether merging firms' influence activity increases or decreases after a merger. We document an increase in lobbying activity and we find some evidence for an increase in campaign contributions.


If you have any questions regarding the seminar, please contact the seminar organizers Kjell Gunnar Salvanes or Tone Solheim.