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Errors of I and II Types in Economic Exchanges with Third Party Enforcement

Author

Listed:
  • Shastitko, A.

    (Bureau of Economic Analysis Foundation (BEA), Moscow, Russia)

Abstract

Coordination and distribution effects in economic exchanges with third party enforcement due to errors of I and II types are at the center of the article. Based on idea of opportunity for equilibrium Pareto-improvement in one shot prisoners’ dilemma game by third-party enforcer it has been shown not only constraints on cost of enforcement services but consequences of errors of I and II types both non-discriminatory and discriminatory cases. Discrimination by third party is analyzed not only from the players direct payment for services perspective but from fines, compensations and errors probabilities too. Errors of I and II types in rules enforcement are analyzed in relation to analogous errors in rules design with some implication for antimonopoly issues.

Suggested Citation

  • Shastitko, A., 2011. "Errors of I and II Types in Economic Exchanges with Third Party Enforcement," Journal of the New Economic Association, New Economic Association, issue 10, pages 125-148.
  • Handle: RePEc:nea:journl:y:2011:i:10:p:125-148
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    File URL: http://www.econorus.org/repec/journl/2011-10-125-148r.pdf
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:rujoec:v:2:y:2016:i:1:p:86-110 is not listed on IDEAS
    2. Kryuchkova, P. & Avdasheva, S., 2012. "Public and Private Enforcement of Law under the High Risk of Type I Errors: the Russian Case," Journal of the New Economic Association, New Economic Association, vol. 15(3), pages 114-140.
    3. Shastitko, A. & Kurdin, A., 2014. "Protection of Intellectual Property Rights and Competition Policy: Seeking for a Better Balance," Journal of the New Economic Association, New Economic Association, vol. 21(1), pages 111-135.
    4. Golovanova, S., 2013. "Competition Restriction Problem in the Markets Linked to the Markets of Essential Facilities," Journal of the New Economic Association, New Economic Association, vol. 20(4), pages 110-132.

    More about this item

    Keywords

    errors of I and II types; rules enforcement; prisoners’ dilemma; coordination and distributive aspects of institutions;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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