Berardino, Cesi; Alberto, Iozzi; Edilio, Valentini - In: The B.E. Journal of Economic Analysis & Policy 12 (2012) 1, pp. 1-39
We apply the idea of relational contracting to a simple problem of regulating a single-product monopoly with unverifiable (then ex ante not contractible) quality. We model the interaction between the regulator and the firm as an infinitely repeated game; we observe that there exist self-enforcing...