-enforceable private contracts (regulation). However, because this mechanism is costly, its effectiveness depends on the aggregate … institutions and regulation is delayed for the later stages. At this point of time, the hold-up problem is solved and this spurs …

provide higher quality services to all consumers. The externality renders the market outcome inefficient. Price regulation …, price regulation should be accompanied by licensing arrangements that cap the number of experts in the market. Our theory … provides a novel rationale for the wide-spread use of price regulation and licensing in real-world markets for expert services. …

all, in a sense to be made precise. -- Asymmetric Information ; Learning by Doing ; Regulation …

that the person on whom the regulation is directly incident — the principal — is not intrinsically biased. I also show that … the regulation can be counter-productive if it attempts to enforce perfect fairness (the first-best allocation) when that …

unobservable to the regulator. The regulator can avoid this problem by a tighter regulation in the first period. This induces the …