Regulating unverifiable quality by fixed-price contracts

We apply the idea of relation contracting to a very simple problem of regulating a single-product monopolistic firm when the regulatory instrument is a fixed-price contract, and quality is endogenous and observable, but not verifiable. We model the interaction between the regulator and the firm as a...

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Bibliographic details
Main Author: Valentini, Edilio
Format: Paper
Language: English
Place of publication: 2009
Related: THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise
Data of publication: 2009
Series: THEMA Working Papers
Online Access: available in Bonn?
Database: RePEc IDEAS
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