The Polarization Effect of Monopsonistic Lobbying
Theoretical Economics
2025-12-02 v1
Abstract
Classical spatial models predict platform convergence, yet empirical polarization persists. This paper proposes a non-electoral mechanism: lobbying as a monopsonistic market for legislative support. Here, extreme benefactors must pay more to attract distant politicians, creating a rent gradient that rewards platform differentiation. We find that the unique equilibrium places politicians at for any monotone policy-production cost. Thus, polarization can arise solely from lobbying-market structure, independent of electoral incentives.
Keywords
Cite
@article{arxiv.2512.01796,
title = {The Polarization Effect of Monopsonistic Lobbying},
author = {Peter Shum},
journal= {arXiv preprint arXiv:2512.01796},
year = {2025}
}
Comments
Draft, 10 pages including appendix and references, 1 figure