The determinants of incentive regulation are a key issue in industrial policy. I study an asymmetric information model … greater are pro-consumer supervisors' incentives. This prediction is consistent with evidence based on US electric power …

A large body of evidence points to misaligned incentives as having a key role in the run-up to the global financial … crisis. These include bank managers' incentives to boost short-term profits and create banks that are “too big to fail …,” regulators' incentives to forebear and withhold information from other regulators in stressful times, and credit rating agencies …