Burnett, Johann Caro; Carrasco, Vinicius - In: International Journal of Industrial Organization 29 (2011) 5, pp. 606-627
This paper considers the problem faced by two regulators in providing incentives to a common (privately informed) regulated firm under various degrees of coordination. In the model, the firm exerts effort toward cost reduction and self-dealing, and incentives can be input-based (monitoring) and...