We study the strategic interaction between the pricing decisions of a pharmaceutical firm and the reimbursement decisions of a government agency which grants reimbursement rights to patients for whom new drugs are most cost-effective. If the reimbursement decision precedes pricing, the agency only reimburses some patients if the drug's private and public health benefits diverge. This is, there ...

This study examines the impact of agency cost and earnings management by employing data from 30 Industrial Jordanian firms 2009 to 2019. In this study, I will investigate if decreases expenses in Jordan, a country where businesses face issues. The confluence problems earning was tested using static model. main findings suggest that Earnings Management is closely associated with costs. There an ...

Cost-benefit analysis is analyzed using a model of agency delegation. In this model an agency observes the state of the world and issues a regulation, which the president may approve or reject. Cost-benefit analysis enables the president to observe the state of the world (in one version of the model), or is a signal that an agency may issue (in another version). The roles of the courts, Congres...

The security of the transportation system depends on that of any of its components and how they are interlinked. But the securing of each component is oftentimes in the hand of the agency in whose jurisdiction it falls. Literature on reliability and security economics suggests that when security is defined by the weakest link in an interlinked system, then its level is determined by the agent w...

We consider a game between two polluting firms and an inspection agency, which can inspect ambient pollution levels before inspecting individual firms, but without committing itself to announced inspection probabilities. Without ambient inspections, we have a unique equilibrium. With ambient inspections, we obtain several equilibria, depending on the relative values of the environmental cost of...