Why favor large incubents? : A note on lobbying in  transition

Why do new, small, and potentially more market-oriented businesses still face such great difficulties in Russia?What makes the business environment for SMEs so cumbersome at the regional level? This note attempts to present and discuss possible answers in light of current economic theory.Lobbying models, the one proposed by Baldwin and Robert-Nicourt 2002 in particular, are brought up as potentially extremely useful in understanding the interplay between firms and politicians leading to uneven economic playing field. Key words: lobbying, Russia, SME