Competition and the reform of incentive schemes in the regulated sector
Abstract
We consider a regulation problem with complete contracting in a principal-agent model with adverse selection and review within this model the various channels by which external competition parameters affect incentives within the regulated firm. The channels are: the principal's information, the principal's objective function, the agent's incentive constraint, the agent's participation constraint. We consider in particular a better information structure, a threat of liquidation, a fight for talent, a more efficient private sector, and the existence of better substitutes. We characterize in each case the conditions under which the effect on incentives is positive.Nous analysons dans un modèle principal-agent avec sélection adverse et contrats complets comment les incitations dans une entreprise réglementée sont affectées par la concurrence externe à travers son effet sur l'information et la fonction objectif du principal d'une part et les contraintes de compatibilité incitative et de rationalité individuelle de l'agent d'autre part. Nous considérons plus précisément les sources suivantes de pressions concurrentielles accrues: une meilleure structure d'information, une menace plus forte de liquidation, une concurrence plus intense pour le talent, un secteur privé plus efficace, et l'existence de meilleurs substituts. Nous caractérisons dans chaque cas les conditions sous lesquelles l'effet sur les incitations est positif.
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(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abst
(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 87 (2003)
Issue (Month): 9-10 (September)
Pages: 2369-2396
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505578
Related research
Keywords:Other versions of this item:
- Boyer, Marcel, 2003. "Competition and the reform of incentive schemes in the regulated sector," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1353-1381, August.
- Marcel Boyer & Jean-Jacques Laffont, 2000. "Competition and the Reform of Incentive Schemes in the Regulated Sector," CIRANO Working Papers 2000s-58, CIRANO.
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- H1 - Public Economics - - Structure and Scope of Government
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Guerriero, Carmine, 2011. "Accountability in government and regulatory policies: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 39(4), pages 453-469.
- Erdogdu, Erkan, 2005.
"Energy market reforms in Turkey: An economic analysis,"
MPRA Paper
26929, University Library of Munich, Germany.
- Erdogdu, Erkan, 2007. "Regulatory Reform in Turkish Energy Industry: An analysis," MPRA Paper 19100, University Library of Munich, Germany.
- Mikhail Drugov, 2010. "Information and delay in an agency model," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 598-615.
- Josse Delfgaauw & Robert Dur, 2004.
"Incentives and Workers’ Motivation in the Public Sector,"
CESifo Working Paper Series
1223, CESifo Group Munich.
- Josse Delfgaauw & Robert Dur, 2008. "Incentives and Workers' Motivation in the Public Sector," Economic Journal, Royal Economic Society, vol. 118(525), pages 171-191, 01.
- Josse Delfgaauw & Robert Dur, 2004. "Incentives and Workers' Motivation in the Public Sector," Tinbergen Institute Discussion Papers 04-060/1, Tinbergen Institute.
- Agrell, Per Joakim, 2010. "Calling the Cards: Fears, Threats and Delegation in Infrastructure Regulation Games," Open Access publications from Université catholique de Louvain info:hdl:2078/70413, Université catholique de Louvain.
- Piccolo, Salvatore & D'Amato, Marcello & Martina, Riccardo, 2008. "Product market competition and organizational slack under profit-target contracts," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1389-1406, November.
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