We develop a model to discuss a government's incentives to delegate to bureaucrats the regulation of an industry. The …-based regulation policy requires the government to make use of a bureaucracy; this has a bureaucratic cost, as the bureaucracy diverts … implications for when and how a government should delegate its regulation of industry. We find that bureaucratic discretion reduces …

focus is now put on the procedural and substantive procurement tools that could be used for AI regulation by contract to … procurement that could be activated to create or enforce digital regulation requirements. It primarily seeks to ascertain whether … procurement tools could effectively operationalise digital regulation goals without simply transferring regulatory decisions to …

This note analyses investment and risk-taking in a simple agency model of public regulation/procurement borrowed from … Laffont & Tirole (1993). We show that the principal will overinvest or underinvest depending on whether investment is … marginally more productive in bad or in good states. Due to the incentive problem investment risk will be avoided even though all …

This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …

base, we distinguish between price-based regulation and cost-based regulation. Under cost-based regulation, investment … triggers a change of regulated prices, whereas, under price-based regulation, investment does not affect them. To motivate …. Our main conclusion is that cost-based regulation accelerates investment compared to price-based regulation. …

.e. Net Neutrality regulation, will be more network users, more investment, and welfare is higher. If profit …-maximizing platform cannot charge buyers there will be more investment than without the regulation. If on top of not charging buyers …This paper studies, using a two-sided market framework, the impact of regulation on platform's pricing scheme, on …

This paper investigates a regulated company's capacity choices for a two-stage investment opportunity with growth … options, if the company faces a cost-based regulation. It uses a theoretical approach: A discrete-time mathematical model … specific investment behavior can be observed: Companies will first invest a small capacity in order to enter the market, but …

This study empirically investigates the impact of public procurement regulation quality on the competition for tenders … and the cost-effectiveness of awarded contracts, by employing the World Bank's Benchmarking Public Procurement and EuroPAM … Public Procurement quality scores. Using extensive data on public procurement in the European Economic Area, Switzerland, and …

We study the effect of observability on the noncontractible investment of a regulated firm with private marginal cost … information. We show that the observability reduces investment, pointing to the regulated firm's prevention of ratcheting. This … result, which is in line with an earlier finding of Tirole (1986) obtained in a bargaining model of procurement with two …

Uncertainty in election outcomes generates politically induced regulatory risk. For monopoly regulation, political …