Bootleggers and Baptists Model

A Bootleggers and Baptists Model is a political economy theory that explains how seemingly opposing groups can come together to support a common policy.

• Context:
  • It was first proposed by Bruce Yandle.
• Example(s):
  • Environmentalists and oil companies supporting a carbon tax to reduce emissions while also benefiting the oil industry financially.
  • Religious groups and secular organizations supporting restrictions on alcohol sales to reduce alcohol-related harm while also benefiting from moral and social reasons.
• Counter-Example(s):
  • Two political parties with fundamentally different ideologies refusing to compromise on any policy, even if it would benefit both parties.
• See: Regulatory Economics, Rum-Running, Blue Laws in The United States, Social Science Research Network.

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References

2023a

• (ChatGPT, 2023) ⇒ https://chat.openai.com Retrieved: 2023-06-23.
  • A: What is Bootleggers and Baptists Model
  • Q: The Bootleggers and Baptists model is an economic theory that explains the formation of unusual political alliances between groups with seemingly opposing interests in order to achieve a common goal, often related to regulation or public policy. The model suggests that certain groups, referred to as “Bootleggers" (representing self-interested individuals or businesses) and “Baptists" (representing moral or public interest groups), may work together to support or promote regulations that benefit both parties, albeit for different reasons. The Bootleggers benefit from the regulations as they create artificial scarcity or impose barriers to entry, allowing them to profit, while the Baptists support the regulations based on moral or public interest grounds.

2023b

• (Aria) ⇒ Opera AI Aria Retrieved: 2023-06-23.
  • A: What is Bootleggers and Baptists Model
  • Q: The Bootleggers and Baptists Model is a concept put forth by regulatory economist Bruce Yandle in 1983 to explain his belief that regulations tend to come about with the support of two seemingly opposing groups: bootleggers, who seek to profit from the regulation, and Baptists, who support the regulation on moral or ethical grounds.

    Here are some key points about the model:

    • The model is based on the observation that regulations are often supported by both bootleggers and Baptists, despite their different motivations.
    • Bootleggers are those who stand to benefit financially from the regulation, such as producers of substitute goods or services that are not subject to the same restrictions.
    • Baptists are those who support the regulation on moral or ethical grounds, such as religious groups or public interest organizations.
    • The model suggests that bootleggers and Baptists can form a powerful coalition that can influence the political process and lead to the creation of regulations that benefit both groups.
    • The model has been used to explain a wide range of regulatory issues, from alcohol prohibition to environmental regulations to occupational licensing.
    • The model has been criticized for oversimplifying the political process and ignoring the role of other interest groups and factors in the creation of regulations.

2023c

• (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Bootleggers_and_Baptists Retrieved:2023-6-22.
  • Bootleggers and Baptists is a concept put forth by regulatory economist Bruce Yandle, derived from the observation that regulations are supported both by groups that want the ostensible purpose of the regulation, and by groups that profit from undermining that purpose.

    For much of the 20th century, Baptists and other evangelical Christians were prominent in political activism for Sunday closing laws restricting the sale of alcohol. Bootleggers sold alcohol illegally, and got more business if legal sales were restricted. Yandle wrote that "Such a coalition makes it easier for politicians to favor both groups. ... the Baptists lower the costs of favor-seeking for the bootleggers, because politicians can pose as being motivated purely by the public interest even while they promote the interests of well-funded businesses. ... [Baptists] take the moral high ground, while the bootleggers persuade the politicians quietly, behind closed doors."

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