Stranlund, John K.; Chavez, Carlos A.; Villena, Mauricio G. - 2007
costs, the costs of monitoring them for compliance, or the costs of collecting penalties from noncompliant firms. Moreover … induces full compliance by every firm. This holds whether or not regulators have complete information about firms’ abatement … unable to observe firms’ abatement costs, the costs of monitoring individual firms, or any firm-specific characteristic that …