Park, Sung-Hoon - In: Applied Economics Letters 17 (2010) 12, pp. 1197-1199
This article explores how a fair-minded regulator has to set policy through an asymmetric reimbursement. The lawyer for a citizen group works on a contingent-fee basis, whereas a polluting firm has either in-house legal advice or lawyers on retainer. Under an asymmetric reimbursement rule we...