The mutually beneficial connection between industries and the governments that regulate them is the subject of a large literature led by Stigler (1971). What has not been studied is how firms choose their desired policies from the set including entry barriers, price floors, subsidies, and demand stimulation. We take as given that government and incumbents from the supply and demand for regulation and explore the choice of political product.
We would like to thank James Buchanan, Ami Glazer, William Kaempfer, William Morris, Gordon Tullock, and seminar participants at the University of Colorado, the University of Chicago, the Department of Justice, the University of Southern California, the Public Choice Society Meetings, and the Western Economic Association Meetings for helpful discussion.