Rent-seeking and market structure: Comment

If the firms in an industry are to be successful in raising money to influence government, two conditions must be met: (1) there must be sufficient rents available from government decisions regarding that industry to make such expenditures worthwhile, and (2) the industry must be sufficiently concentrated to avoid a free-rider problem in fund-raising. This argument, though seemingly intuitively appealing, has been under recent empirical attack; this paper seeks to restore the parapets.