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We analyze the problem of a Legislator dealing with privately informed whistleblowers. We identify their incentives to release distorted testimonies and characterize the second-best policy limiting this behavior. The key finding is that there exists a positive externality between criminal...
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We show that the separation of powers in regulation may act as a commitment against the threat of regulatory capture. Splitting regulatory tasks and monitoring technologies among several non-benevolent regulators may reduce their discretion in engaging in socially wasteful activities. When...
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