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 …

focus is now put on the procedural and substantive procurement tools that could be used for AI regulation by contract to … procurement that could be activated to create or enforce digital regulation requirements. It primarily seeks to ascertain whether … procurement tools could effectively operationalise digital regulation goals without simply transferring regulatory decisions to …

This note analyses investment and risk-taking in a simple agency model of public regulation/procurement borrowed from … Laffont & Tirole (1993). We show that the principal will overinvest or underinvest depending on whether investment is … marginally more productive in bad or in good states. Due to the incentive problem investment risk will be avoided even though all …

We study a buyer's optimal investment strategy for new technologies when costs evolve stochastically and are private … leads to delays in investment compared to the real option benchmark. We also suggest a payment structure that implements the … buyer's optimal investment timing as a Vickrey-type auction …

The procurement of complex projects is often plagued by large cost overruns. One important reason for these additional …

This paper studies the interaction between financially constrained and financially strong firms on a procurement market …. It characterizes and discusses a procurement agency's optimal response when faced with financially asymmetric firms. By …

The literature on public procurement pays great attention to the rules underlying tendering procedures as well as on …

This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …

This paper presents a novel theory of corruption in public procurement. It considers an agency setting of contract …