This paper considers regulating a vertically integrated utility under asymmetric information about efficiency gains due to integration. The benchmark case--benevolent regulation--implies a divestiture of a technically efficient integration, unless the cost savings due to integrating are...

This paper presents a dynamic model on lobbying. The interactions between two competing lobbies, who attempt to influence regulations and legislation, are modeled as a differential game. The author considers for this game first a time-consistent and then a subgame-perfect equilibrium (in linear...

This paper explores the conjecture whether the Leviathan motive of politicians--to tax for the purpose of raising revenues rather than for benevolent, Pigovian motives--helps to overcome the inefficiency of international pollution spillovers such as in the cases of acid rain and global warming....

The politicians' reactions to changing circumstances appear often sluggish. The decisions about the construction of a nuclear reprocessing plant at Wackersdorf, Germany, provide a recent example. Reprivatization of the company led to an immediate cancellation of the project due to its lack of...