Question

Representatives of competing firms often comprise special interest groups. Why are competitors sometimes willing to cooperate in order to form lobbying associations?

a. To eliminate competition entirely
b. To gain government subsidies
c. To influence government policies that benefit the industry
d. To weaken their own position in the market

Answer 1

Competing firms form special interest groups for lobbying in order to influence government policies that are beneficial to the entire industry, using their collective strength and resources.

Step-by-step explanation:

Representatives of competing firms often comprise special interest groups because these groups stand to benefit from cooperation when dealing with common issues. Competing corporations can join together in such groups for several reasons, including the fact that there is strength in numbers, they may face common challenges or regulatory environments that affect the whole industry, and they can all derive benefits from desirable governmental policies.

This collaboration manifests through forming lobbying associations to exert influence on government policies in ways that benefit their industry. For example, businesses may collectively lobby for fewer governmental regulations or changes in taxation that can benefit all players within their sector. Lobbyists with experience and resources can significantly aid in crafting legislation favorable to the interests they represent.