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Uncertainty in election outcomes generates politically induced regulatory risk. For monopoly regulation, political parties' risk attitudes towards such risk depend on a fluctuation effect that hurts both parties and an output-expansion effect that benefits at least one party. Irrespective of the...
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Within the economic profession, it is a widely held view that the fiscal criteria of the Maastricht treaty are arbitrary numbers without economic foundation. Much of this criticism seems to overlook an important aspect - the strategic dimension of the criteria. This paper focuses on one...
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-only auction (discouraging early information exchange) and bilateral negotiations with a preselected seller (reducing competition …). Bilateral negotiations are superior if potential design improvements are important, if renegotiation is particularly costly, and … if the buyer's bargaining position is strong. Moreover, negotiations provide stronger incentives for sellers to …
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A trend towards softer regulation, especially in the form of negotiated environmental agreements, is observable in national and international environmental policies. Such agreements are controversial, because there are fears that government will relinquish its responsibility for environmental...
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