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The paper considers monitoring of environmental change as the central element of environmental regulation. Monitoring, as each kind of principal-agent relations, easily gives rise to corruptive behavior. In the paper we analyze economic models of environmental monitoring with high costs,...
Persistent link: https://www.econbiz.de/10010860833
We examine how diversification of projects assigned to an agency can enhance efficiency by informing a principal of the agency’s quality. Projects that appear inefficient in isolation may be justified when assigned to the same agency. Assigning different tasks to different special purpose...
Persistent link: https://www.econbiz.de/10005503867
This paper studies the problem of a monopolist privately informed about its product quality, who can sell its product in advance, and faces forward-looking buyers who learn about the quality over time. We show that if the monopolist prefers to sell sooner than later, the unique equilibrium...
Persistent link: https://www.econbiz.de/10005504010
We study the informational role of prices. To that end, we consider the framework of a dominant firm with a competitive fringe. When the competitive fringe is large enough, there exists a unique fully revealing equilibrium, in which the price conveys full information about the quality of the...
Persistent link: https://www.econbiz.de/10005489841
This paper examines one of the most important marketing strategies by software producers on the Internet. That is whether to offer free samples and if so, whether to list the samples on shareware repositories. I show that firms with higher value products have a greater incentive to offer free...
Persistent link: https://www.econbiz.de/10004970309
Earmarking is a form of bundling in which government adopts a tax policy while specifying the uses of the revenue. This paper explores how bundling can enhance efficiency: it can inform the public of the quality of a program proposed, or of the quality of the agency that will be responsible for...
Persistent link: https://www.econbiz.de/10004977972
Corporate self-regulation is a crucial non-market strategy, and has generally been understood as a response to regulatory threats. However, self-regulation can also influence the nature of regulatory threats, especially when firms have private information about their costs of abatement. We study...
Persistent link: https://www.econbiz.de/10011096390
We study firms� incentives to acquire costly information in booms and recessions to understand the role of endogenous information in explaining business cycles. We find that when the economy has been in a recession in the previous period, and firms enter the current period with a...
Persistent link: https://www.econbiz.de/10011099646