Pouyet, Jérôme - In: Journal of Public Economic Theory 4 (2002) 4, pp. 543-572
We consider the regulation of a duopoly under incomplete information. When firms act noncooperatively, the regulator uses yardstick mechanisms to bridge his informational gap at no cost. However, this provides the firms with an incentive to collude. Copyright Blackwell Publishing, Inc. 2002.