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A firm engaged in activities which are environmentally risky has private informationboth on her choice of safety care and on the level of her assets. Public authorities havea stake in implementing a high level of prevention effort and in unveiling the true levelof assets for liability payments....
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This article takes stock of the many contributions of Jean-Jacques Laffont to the theory of group incentives. We illustrate advances of the paradigm through examples drawn from the theory of public goods, the theory of hierarchies, and the theory of regulation.
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