Lobbyists as Gatekeepers: Theory and Evidence

Lobbyists are omnipresent in the policy-making process, but value that they bring to both clients and politicians remains poorly understood. We develop a model which lobbyist’s derives from his ability selectively screen he brings politician, thereby earning politician’s trust preferential treatment for clients. face dilemma, as their also increases special interests prices can charge. A profit motive undermines solve this an interest policy outcomes—due either political ideology or personal connection—enhances it, paradoxically profits. Using unique data set reports mandated by Foreign Agents Registration Act, we find lobbyists become more selective when ideologically aligned with politicians, consistent our prediction.