Austen-Smith, David; Dziuda, Wioletta; Harstad, Bård; … - In: Theoretical economics : TE ; an open access journal in … 14 (2019) 4, pp. 1483-1534
Why do rational politicians choose inefficient policy instruments? Environmental regulation, for example, often takes the form of technology standards and quotas even when cost-effective Pigou taxes are available. To shed light on this puzzle, we present a stochastic game with multiple...
