What specifically stigler mean by demand and supply

Reference no: EM133473578

What specifically does Stigler mean by the "demand" and "supply" of regulation, as used in the abstract on page 1?
Stigler argues that "an industry with power to obtain governmental favors usually does not use this power to get money". Why? Describe the specific problem that, according to Stigler, direct subsidies to an industry create for the businesses that lobby for them.
Expand on your previous answer in this way: Compare and contrast the use of political power to get a direct subsidy of money for a firm with the use of that power to get a tariff against foreign imports that compete with what a firm produces. In other words, in what way does a tariff suffer from the same problems as a direct cash subsidy? Under what circumstances is this similarity mitigated such that lobbying for a tariff becomes a good idea? Finally, summarize this insight in one sentence that gives us a testable hypothesis about the pattern of tariff laws. (I.e. if Stigler is correct, what kinds of firms should we predict will successfully lobby for tariff protection? What kinds of firms should we predict will not successfully lobby for tariff protection?)

Reference no: EM133473578

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