BK Drinkwater has a couple of excellent posts on established businesses using the force of government to muscle out competitors ( I also like them because they both have my name in them, to paraphrase the man himself). Here’s another interesting example from the story of unlicensed contractor stings I blogged about at Fr33Agents the other day.
It turns out that the guy posing as a customer in order to arrest the unlicensed electrician is himself a state-licensed electrician. That is, a member of the state-protected cartel is helping the police with their job. This subsidy of law-enforcement is similar to Hall and Deardorff’s theory of lobbying as legislative subsidy. When special interests find it difficult to have extra sway over policy through outright bribery, they can provide services to already sympathetic legislators in order to make them more effective. Legislators supported by lobbyists providing research and pre-written speeches will be more able to pursue the legislative goals. Cops supported by unusually public-spirited electricians will be more effective in enforcing cartels.