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Behavioral Regulatory Agencies

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  • Francesc Trillas Jané

    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

Abstract

This article analyses how the commitment problem in regulation, and the potential for a strategic delegation solution, is affected by the consideration of bounded rationality by agents that participate in the regulatory interaction. Regulators and other agents have endogenous preferences. Non-optimizing behavior, expert biases (and related de-biasing strategies), and a concern for fairness and process also modify the traditional regulatory game. As a result, on the one hand independent regulators are seen as part of a potentially more robust regulatory system, and on the other hand their contribution to this system can be based on a wider range of instruments.

Suggested Citation

  • Francesc Trillas Jané, 2016. "Behavioral Regulatory Agencies," Working Papers wpdea1606, Department of Applied Economics at Universitat Autonoma of Barcelona.
    • Handle: RePEc:uab:wprdea:wpdea1606
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