Week 3 Notes
Popular in Business, Government, and Society
BUS G 202
verified elite notetaker
Popular in Business
This 3 page Class Notes was uploaded by Kaitlyn Palmer on Friday January 30, 2015. The Class Notes belongs to BUS G 202 at Indiana University taught by Ellie Mafi-Kreft in Spring2015. Since its upload, it has received 193 views. For similar materials see Business, Government, and Society in Business at Indiana University.
Reviews for Week 3 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 01/30/15
G202 Day 4 12715 Public Sector Government Participants 0 Voters assumed Rationally Ignorant o Costly to know about political issues individual vote won t make a difference 0 Politicians elected of cers assumed to be VoteMaximizers 0 To carry out goals they must be elected 0 Provide info at low cost to voters o Bureaucrats civil servants assumed to be BudgetMaximizers o Hired into of ce like in private sector 0 They seek promotions higher pay Need a bigger budget Possible Public Sector lnef ciency 1 The Shortsightedness Effect 0 Current bene ts future costs dif cult to identify 0 Maximized in uence on current votersexpense by future generations 2 Operational lnef ciency 0 Public sector ahs no pro t motive o Reduces incentive of gov t to keep costs low bureaucrats are not reward from reducing costs 0 Ex If you don t spend your whole budget the Congress will give you less next year from the Of ce 0 Ex Cop car putting extra lights on a cop carjust because 3 Lobbying Rent Seeking o Lobbying Rent Seeking Devoting resources to in uence public policy formation in order to bring more income to your interests 0 Income redistribution occurs inef cient o Lobbyists nd political opportunities threats inform politicians public opinion form coalitions groups with similar interests 0 Ex Not allowed to ship alcohol to other states the liquor stores lobby for this for their pro t margins amp they partnered with Mother s Against Drunk Drivers to make sure underage kids don t get it 4 The Special Interest Effect 0 Special Interest Effect Small groups of people receive bene ts of expense at large groups 0 Individual costs of taking action exceed potential individual bene ts 0 Small concentrated groups can gain political power Types of Political Action rene fs Support Wi39d l 39 E I SEE Enmnh39altedl E lilepersed p E in widely a a I Hi Ania Er t a managed I mquot E E Eminenilmlted Engraneurial quotitem 3 Emma Types of Political Action 1 Majoritarian Politics 0 Ex Social Security 0 No special interest groups take action on either side of the issue 0 Lobbying does not occur 2 Client Politics 0 Ex USDA Foreign Advertising Funds MAP 0 Tax payers pay business get because they penetrate foreign markets 0 One special interest group is active in favor of a group 0 Lobbying will likely be successful Day 5 12915 Types of Political Action Continued 3 Interest Group Politics 0 Active special interest groups are on both sides of the issues 0 EX Legalizing Marijuana NORML versus CALM 0 Outcomes depend on the relative strength of lobbying 4 Entrepreneurial Politics 0 On special interest group is active against an issue 0 Ex nuclear waste dumps 0 Successful lobbying will be costly Ventria Case 2 of world production 14 of exports 2nOI or 3rd largest 2 million deaths from diarrhea per year their rice proteins will help 20 person start up company 2000 farmers in California Rice industry makes 500 million Allies o Investors Employees UC Davis 0 Infant Formula Industry 0 World Health Organization UNICEF Red Cross 0 Biotech Association Pharmaceutical Companies 0 CRC ended up siding here Neutral 0 FDA USDA EPA o CADA CRC farmers millers public reps Adversaries 0 Rice Farmers 0 Rice Millers o Exporters of Rice 0 Japanese Retail Association 0 Environmentalists 0 Food Safety Group 0 CADA ended up siding here disagreeing with the CRC Fight for California Compromise for California Run from California Interest Group Politics
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'