Optimal Regulation of Research and Development under Imperfect Information
The optimal regulatory strategy to promote research and development aimed at cost reduction is derived for an environment in which the firm's information about the technology of cost reduction, although initially imperfect, is better than that of the regulator. The manner in which the optimal regulatory strategy varies with changes in the informational environment is also described.
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Volume (Year): 13 (1982)
Issue (Month): 2 (Autumn)
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