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This chapter discusses the three themes of economics research on regulation. The first and oldest deals with market … research: regulation as practiced commonly has been found to be inefficient and to adopt methods that do not appear to be the … employ. Regardless of the motives of political actors, an essential ingredient to a theory of regulatory policy when the …
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We consider an environment in which there is substantial uncertainty about the potential negative external effects of AI algorithms. We find that subjecting algorithm implementation to regulatory approval or mandating testing is insufficient to implement the social optimum. When testing costs...
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