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Learning in Bayesian regulation: desirable or undesirable?

Author

Listed:
  • Ismail Saglam

    (Bogazici University)

  • Semih Koray

    (Bilkent University)

Abstract

We examine the social desirability of learning about the regulated agent in a generalized principal-agent model with incomplete information. An interesting result we obtain is that there are situations in which the agent prefers a Bayesian regulator to have more, yet incomplete, information about his private type.

Suggested Citation

  • Ismail Saglam & Semih Koray, 2007. "Learning in Bayesian regulation: desirable or undesirable?," Economics Bulletin, AccessEcon, vol. 3(12), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-07c70006
    as

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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume3/EB-07C70006A.pdf
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    References listed on IDEAS

    as
    1. Jordan, J. S., 1991. "Bayesian learning in normal form games," Games and Economic Behavior, Elsevier, vol. 3(1), pages 60-81, February.
    2. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
    3. Semih Koray & Ismail Saglam, 2005. "The Need for Regulating a Bayesian Regulator," Journal of Regulatory Economics, Springer, vol. 28(1), pages 5-21, July.
    4. Koray, Semih & Sertel, Murat R., 1990. "Pretend-but-perform regulation and limit pricing," European Journal of Political Economy, Elsevier, vol. 6(4), pages 451-472.
    5. Guesnerie, Roger & Laffont, Jean-Jacques, 1984. "A complete solution to a class of principal-agent problems with an application to the control of a self-managed firm," Journal of Public Economics, Elsevier, vol. 25(3), pages 329-369, December.
    6. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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    Citations

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    Cited by:

    1. M. Remzi Sanver, 2022. "Well-designed incentive schemes: introduction to the special issue in honor of Semih Koray," Review of Economic Design, Springer;Society for Economic Design, vol. 26(3), pages 247-254, September.
    2. Ismail Saglam, 2024. "The Bayesian approach to monopoly regulation after 40 years," Journal of Regulatory Economics, Springer, vol. 65(1), pages 108-136, June.
    3. Saglam, Ismail, 2014. "Research and Development of an Optimally Regulated Monopolist with Unknown Costs," MPRA Paper 60245, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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