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Authors
Andrew N. Kleit
Working Paper
161

Certain government regulations require a good deal of investment by firms before the regulations actually go into effect. In these cases, if a firm does not engage in the desired level of investment, it can be quite costly to society to actually enforce the regulation. This paper derives a game theoretic model of how such regulation could be enforced by examining the bureaucratic incentives of the various governmental parties involved in overseeing a regulatory program.