Political institutions create the policies which govern the shape of the playing field on which firms compete. These decisions can have a profound effect on the profitability of firms. Because of this, the study of political institutions must go beyond understanding how policies affect competitiveness; it should examine how these policies are crafted and how the very firms that are governed by these laws and regulations attempt to influence shape of those same rules.

In this lecture, I will review the structure of policy making institutions and explore how firms and organized interests try to influence these institutions to their advantage. I will discuss the state of the current literature, common problems with current research, and open avenues for future investigation.