We study the regulation of a morally responsible agent in the context of a negative consumption externality and …

creates an opportunity to study how environmental regulation affects the location of economic activity, the externality costs …

externality continue to be critical determinants of the efficiency of prices relative to quantities, with flatter marginal … externality therefore weighs heavily in favor of price instruments for their control, so long as the optimal control falls short …

negative externality (higher effort decreases theexpected future quality of the asset) case: it is enough for the principal … tocommit to reallocate the right to use the asset at the end of the first period.In the positive externality case (when higher …

bad. In a market setting with multiple consumers per expert, a cross-consumer externality arises: one consumer's payment … provide higher quality services to all consumers. The externality renders the market outcome inefficient. Price regulation …

asymmetric information. Regulation can be welfare-improving in the presence of an externality and also in case of collateral …

bad. In a market setting with multiple consumers per expert, a cross-consumer externality arises: one consumer's payment … provide higher quality services to all consumers. The externality renders the market outcome inefficient. Price regulation …