From the perspective of a congressman, is a lobbyist merely Santa Claus in a pin-striped suit?
In this amusing video, economics professor David Zetland, demonstrates how lobbyists essentially outbid one another for a dollar. But do you think any of the lobbyists realize that there’s an economic name for their shenanigans? It’s called an all-pay auction and guess what! The only way to win in an all-pay auction is not to bid at all. Actually, Zetland tartly notes, the politicians win. Always.