Democracy, Lobbying and Economics

Issue: 3/2019

Milan Žák

University of Economics and Management, Prague, Czech Republic, Nárožní 2600/9a, 158 00 Praha 5, e-mail:

The paper deals with the issue of lobbying, defined as a democratic means of promoting interests. The text tries to find answers to the problems in the current eco-nomic theory. The basic links are defined by using a simple graphic model, which are further examined by the SWOT analysis. The result is the knowledge that the basic coordination mechanism is the market – the information market. The role of govern-ment lies above all in creating a favourable institutional environment that does not interfere with spontaneous market relations. However, there are certain situations that the government could or should regulate. These situations are described by three hypothetical scenarios – a society without lobbying, a society where lobbing exists, but it is not transparent, and a society where lobbing is transparent, leading to a final discussion of possible directions and ways of its regulation.

DOI: 10.2478/revecp-2019-0011
JEL: D82, D72, C70, A12, A11
Keywords: Public Choice, New Political Economy, New Institutional Economy, Impact of Lobbying on Democracy

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