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- W3121633501 abstract "We develop a dynamic regulation model of quality provision where maintenance efforts and quality shocks have a durable impact. When the regulator contracts with a sequence of agents, asymmetric information can lead to overprovision of quality, reflecting a dynamic rent extraction effect. When the regulator contracts with a single agent, the efficiency of their relationship depends on the regulator's ability to transfer rents across periods. Hiring a single agent with unlimited liability is socially preferable to hiring a sequence of agents, even when no commitment is feasible. By contrast, shorter franchises are socially preferable if the agent has limited liability." @default.
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- W3121633501 date "2007-07-01" @default.
- W3121633501 modified "2023-09-25" @default.
- W3121633501 title "Dynamic regulation of quality" @default.
- W3121633501 hasPublicationYear "2007" @default.
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