Advanced Search
MyIDEAS: Login

Incentives in Multi-Period Regulation and Procurement : a Graphical Analysis

Contents:

Author Info

  • Dionne, G.
  • Fluet, C.

Abstract

Cet article analyse les politiques de réglementation et d'achat public sur plusieurs périodes en présence d'asymétrie d'information entre le régulateur et les entreprises réglementées. Le cadre général de Laffont et Tirole est utilisé. Nous proposons une analyse graphique du modèle de second-rang en termes de la capacité d'engagement du régulateur. Comme dans Laffont et Tirole, nous distinguons les cas de plein engagement, d'engagement avec contrainte de renégociation et de non-engagement. Notre analyse graphique de l'environnement à deux périodes-deux types nous permet de mettre l'accent sur les fondements des principaux résultats concernant la nature des contrats incitatifs optimaux et de proposer des extensions à la contribution de Laffont et Tirole. Le modèle peut être appliqué à des secteurs où la production de biens publics (comme la sécurité dans le transport des matières dangereuses) est déléguée à des entreprises privées. This paper analyses multi-period regulation or procurement policies under asymmetricinformation-between the regulator and regulated firms within the general framework developed by Laffont and Tirole. We provide a graphical analysis of the second-best policy in terms of the regulator's commitment capacity. As in Laffont and Tirole, we distinguish between full commitment (long-term contracts that can be committed to), commitment and renegotiation (renegotiation-proof long-term contracts and noncommitment (a series of short-term contracts). Our graphical analysis of the two-period, two-type environment emphasizes the rationale of the main results concerning the form of the optimal incentive scheme and extends Laffont and Tirole's contribution. The analysis can be applied to situations where the production of a public good or service (such as the level of safety in the transport of hazardous materials) is delegated to private firms.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/1866/2103
Download Restriction: no

Bibliographic Info

Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 9533.

as in new window
Length: 44 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:mtl:montde:9533

Contact details of provider:
Postal: CP 6128, Succ. Centre-Ville, Montréal, Québec, H3C 3J7
Phone: (514) 343-6540
Fax: (514) 343-5831
Web page: http://www.sceco.umontreal.ca
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Amigues, Jean-Pierre & Favard, Pascal & Gaudet, Gerard & Moreaux, Michel, 1998. "On the Optimal Order of Natural Resource Use When the Capacity of the Inexhaustible Substitute Is Limited," Journal of Economic Theory, Elsevier, vol. 80(1), pages 153-170, May.
  2. Touhami, A. & Martens, A., 1996. "Macroemesures in Computable General Equilibrium Models: a Probabilistic Treatment with an Application to Morocco," Cahiers de recherche 9621, Universite de Montreal, Departement de sciences economiques.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mtl:montde:9533. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.