Who Benefits When Firms Game Corrective Policies?
نویسندگان
چکیده
Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. This harms buyers eroding information, but it benefits them when cost savings are passed through into prices. We develop a model highlights this tension and use to analyze of automobile carbon emission ratings in EU. document startling increases using novel data. then effects calibrated simulations. Over wide range parameters, we find pass-through substantially outweighs information distortions; on net, benefit from gaming, even they fooled it. (JEL H23, L51, L62, Q53, Q54, Q58)
منابع مشابه
When Market Competition Benefits Firms
A conventional wisdom in economics posits that more intense market competition, measured in almost any way, reduces firm profit. In this paper, we challenge this conventional wisdom in a simple Cournot model with strategic R&D investments wherein an efficient firm (dominant firm) competes against less efficient firms (fringe firms). We find that an increase in the number of fringe firms can sti...
متن کاملShould Pricing Policies be Regulated when Firms may Tacitly Collude?
Active antitrust policy may result in perverse effects detrimental to consumer and social welfare because such active policy affects market structure through its impact on the mediumand long-run decisions of firms. This paper investigates the effects of deregulation of firms' pricing policies in a dynamic setting that allows for tacit collusion. We show that, provided the consumer reservation p...
متن کاملCorrective Enforcement of Security Policies
Monitoring is a powerful security policy enforcement paradigm that allows the execution of a potentially malicious software by observing and transforming it, thus ensuring its compliance with a user-defined security policy. Yet some restrictions must be imposed on the monitor’s ability to transform sequences, so that key elements of the execution’s semantics are preserved. An approximation of t...
متن کاملAlternative Green Payment Policies under Heterogeneity When Multiple Benefits Matter
We investigate the environmental impacts of several forms of policies that offer farmers subsides in return for adoption of conservation tillage. The policies differ on whether the tillage practice or one of the environmental benefits is targeted. We develop an environmental Lorenz curve that fully represents the performance of the targeting policies, and we show that these curves can be used d...
متن کاملWho Benefits from the Earned Income Tax Credit? Incidence Among Recipients, Coworkers and Firms
Who Benefits from the Earned Income Tax Credit? Incidence among Recipients, Coworkers and Firms How are hourly wages affected by the Earned Income Tax Credit? Using variation in state EITC supplements, I find that a 10 percent increase in the generosity of the EITC is associated with a 5 percent fall in the wages of high school dropouts and a 2 percent fall in the wages of those with only a hig...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Journal: Economic Policy
سال: 2021
ISSN: ['1945-7731', '1945-774X', '1945-7812']
DOI: https://doi.org/10.1257/pol.20190019