K.U.Leuven - Departement toegepaste economische wetenschappen
DTEW Research Report 9731 pages:1-21
This paper presents spatial models of policy making in the European Union and focuses on informational asymmetries and interest group lobbying. It determines optimal lobbying strategies under the EU's three principal legislative procedures: the consultation, cooperation and codecision procedures. Lobbying is modeled as a game of strategic information transmission as in Austin-Smith (1993). The paper studies agenda, amendment and vote stage lobbying. At the agenda stage an interest group can lobby the Commission. At the amendment and vote stages it can lobby the Council and the Parliament. The paper finds that at the amendment stage an interest group lobbies the institution whose preferences are closer to its own. It lobbies the institution whose preferences are further from its own at the vote stage.