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5 months ago
What is interest group politics?
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Business and Its Environment
Edition: 7th
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According to the Wilson-Lowi matrix, interest group politics occurs when both the benefits and the harm from a nonmarket alternative are concentrated. In this situation, both supporters and opponents have incentives to act and if, in addition, their costs of nonmarket action are low, interest groups will be active on both sides of the issue. The outcome is then largely determined by the amounts and effectiveness of the nonmarket action generated by the interests on each side of the issue. Legislation that pits business against labor is typically characterized by interest group politics. International trade policy, which often finds business opposed by labor unions and environmentalists, is also characterized by interest group politics.
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