We study the optimal regulation of a monopolist when intrinsic efficiency (intrinsic cost) and empire building tendency …

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 …

. This ignores a potential adverse selection problem. The present paper analyzes the procurement of innovations when the …