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Why Do Special Interest Groups Have a Disproportionate Amount of Influence

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Essay

Why do special interest groups have a disproportionate amount of influence compared to voters in general?


Definitions:

Vertical Merger

A merger between two or more companies operating at different stages in the production process of a good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often leading to consolidation in the market.

Herfindahl Index

A measure of market concentration, calculated by squaring each company's market share in the industry and then summing the squares.

Market Power

The ability of a company or entity to influence the price and output levels in a market.

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