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Firms often try to influence individuals that, like regulators, are tasked with advising or deciding on behalf of a third party. In a dynamic regulatory setting, we show that a firm may prefer to capture regulators through the promise of a lucrative future job opportunity (i.e., the...
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Firms have incentives to influence regulators' decisions. In a dynamic setting, we show that a firm may prefer to capture regulators through the promise of a lucrative future job opportunity (i.e., the revolving-door channel) than through a hidden payment (i.e., a bribe). This is because the...
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agencies. After having examined the market, competition authorities concluded that tacit collusion existed but could not easily … be prosecuted under the given competition law. In several other countries, various types of regulatory schemes are … type of variable tax scheme successfully manages to render collusion an unprofitable business. In addition, it is also easy …
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We investigate regulation as the outcome of a bargaining process between a regulator and a regulated firm. The … setting, we explore the scope for collusion between the regulator and the firm, which results in the manipulation of the … regulator's report on the firm's costs to Congress. The firm's bene.t of collusion arises from the higher price the efficient …
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agencies. After having examined the market, competition authorities concluded that tacit collusion existed but could not easily … be prosecuted under given competition law. In several other countries, various types of regulatory schemes are … specially tailored tax on price successfully manages to render collusion an unprofitable business by collecting marginal profits …
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