Thirsting for Efficiency
Publisher: Pergamon
Published: April 1, 2002
Language: eng
Number of pages: 376
ISBN-13: 9780080440774
First sentence: Our premise is that a regulatory contract will be more likely to achieve its goals when three necessary conditions are met: (i) information asymmetries between regulator and manager are reduced; (ii) sufficiently high powered incentives are provided to motivate the manager to comply with the contract's goals; and (iii) both parties provide credible signals of their commitment to abide by the contract and credible enforcement provisions are established.