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Two conflicting interest groups buy favors from a decision-maker. Influence is modeled as a common agency game with lobbyists proposing monetary contributions contingent on decisions. With common knowledge preferences, groups form efficiently and lobbying competition perfectly aggregates preferences. When preferences are private information, free riding in collective action arises within groups. This free riding implies that groups choose lobbyists with moderate preferences tilting final decisions towards their competitors. Intragroup inefficiencies are jointly determined at equilibrium. Lobbying competition imperfectly aggregates preferences. Asymmetric information, by softening lobbying competition, might increase groups' payoffs, although it always hurts the decision-maker.
