Transaction theory

Definition

Transaction theory in the context of interest groups suggests that political outcomes can be understood as transactions or exchanges between interest groups and policymakers. Interest groups provide resources like information, public support, or campaign contributions in exchange for favorable policies or decisions.

Related terms

Interest Groups: Organizations formed by individuals sharing common objectives who seek to influence public policy.

Lobbying: The act of attempting to influence decisions made by officials in the government, often by interest groups or lobbyists.

Political Action Committee (PAC): A type of organization that pools campaign contributions from members and donates those funds to campaign for or against candidates, ballot initiatives, or legislation