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This paper studies the effect of soft-budget constraints in a pure adverse selection model of monopoly regulation. We …-up allows governments to avoid re-funding moneyloosing firms and that welfare is larger than under traditional regulation where …
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need to adapt their ways of doing business, including in their approach to procurement of goods and services, for economic …
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Critics of privatization argue that poor labor force restructuring is a key concern and that governments should establish better retrenchment programs. Using new data from arandom sample of 400 companies in the world, we test competing theories about the wisdom of retrenchment programs and their...
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The paper studies the impact of government budget constraint in a pure adverse selection problem of monopoly regulation …. The government maximizes total surplus but incurs some cost of public funds. An alternative to regulation is proposed in …-post with the private firms. This ex-post contracting set-up allows more flexibility than traditional regulation where …
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