The determinants of incentive regulation are a key issue in industrial policy. I study an asymmetric information model …

market competition and regulation in addressing these concerns. Traditional (ex-post) antitrust intervention will be less …

Pigovian tax. In particular, earmarking prevails and actual taxes are usually combined with regulation. Furthermore tax rates … explain these design parameters: the tax rate, earmarking pattern and whether the tax is combined with a regulation. An … introduced in equilibrium which rate is lower than the regulatory shadow price when the status quo regulation is imperfectly …