IDEAS home Printed from https://ideas.repec.org/p/cdl/oplwec/qt9z00731z.html
   My bibliography  Save this paper

Environmental Remedies: An Incomplete Information Aggregation Game

Author

Listed:
  • Rausser, Gordon C.
  • Simon, Leo K.
  • Zhao, Jinhua

Abstract

The burden of resolving an environmental problem is typically shared among several responsible parties. To clarify the nature and extent of the problem, these parties must provide information to the regulator. Based on this information, the regulator will instigate an investigation of the problem, to determine an appropriate remedy. This paper investigates the incentives facing agents to promote excessive investigation and postpone remediation. Our incomplete information game-theoretic model may be of general interest to game theorists: we apply a new theorem guaranteeing pure-strategy equilibria and introduce a class of games called " aggregation games" which have interesting properties and are widely applicable.

Suggested Citation

  • Rausser, Gordon C. & Simon, Leo K. & Zhao, Jinhua, 2000. "Environmental Remedies: An Incomplete Information Aggregation Game," Berkeley Olin Program in Law & Economics, Working Paper Series qt9z00731z, Berkeley Olin Program in Law & Economics.
    • Handle: RePEc:cdl:oplwec:qt9z00731z
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/9z00731z.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Susan Athey & Kyle Bagwell & Chris Sanchirico, 2004. "Collusion and Price Rigidity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(2), pages 317-349.
    2. Rausser, Gordon C. & Simon, Leo K. & Zhao, Jinhua, 1998. "Information Asymmetries, Uncertainties, and Cleanup Delays at Superfund Sites," Journal of Environmental Economics and Management, Elsevier, vol. 35(1), pages 48-68, January.
    3. Milgrom, Paul & Shannon, Chris, 1994. "Monotone Comparative Statics," Econometrica, Econometric Society, vol. 62(1), pages 157-180, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Morten L. Bech & Rodney J. Garratt, 2012. "Illiquidity in the Interbank Payment System Following Wide-Scale Disruptions," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(5), pages 903-929, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rausser, Gordon C. & Simon, Leo K. & Zhao, Jinhua, 1999. "Cleanup delays at hazardous waste sites: an incomplete information game," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2m01d1r0, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Andrea Attar & Thomas Mariotti & François Salanié, 2021. "Entry-Proofness and Discriminatory Pricing under Adverse Selection," American Economic Review, American Economic Association, vol. 111(8), pages 2623-2659, August.
    3. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    4. Loebbing, Jonas, 2018. "An Elementary Theory of Endogenous Technical Change and Wage Inequality," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181603, Verein für Socialpolitik / German Economic Association.
    5. Sylvain Chassang, 2010. "Building Routines: Learning, Cooperation, and the Dynamics of Incomplete Relational Contracts," American Economic Review, American Economic Association, vol. 100(1), pages 448-465, March.
    6. Steven N. Durlauf & Ananth Seshadri, 2003. "Is assortative matching efficient?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 21(2), pages 475-493, March.
    7. David Kelsey & Frank Milne, 2006. "Externalities, monopoly and the objective function of the firm," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(3), pages 565-589, November.
    8. Suman Banerjee & Thomas H. Noe, 2017. "Legal-System Arbitrage and Parent–Subsidiary Capital Structures," Management Science, INFORMS, vol. 63(11), pages 3809-3828, November.
    9. Rabah Amir & Isabel Grilo, 2003. "On strategic complementarity conditions in Bertrand oligopoly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(1), pages 227-232, August.
    10. Ghosal, Sayantan & Dalton, Patricio, 2013. "Characterizing Behavioral Decisions with Choice Data," CAGE Online Working Paper Series 107, Competitive Advantage in the Global Economy (CAGE).
    11. Brunner, Christoph & Hu, Audrey & Oechssler, Jörg, 2014. "Premium auctions and risk preferences: An experimental study," Games and Economic Behavior, Elsevier, vol. 87(C), pages 467-484.
    12. Jewitt, Ian & Mukerji, Sujoy, 2017. "Ordering ambiguous acts," Journal of Economic Theory, Elsevier, vol. 171(C), pages 213-267.
    13. Juan-José Ganuza & Jos Jansen, 2013. "Too Much Information Sharing? Welfare Effects of Sharing Acquired Cost Information in Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 61(4), pages 845-876, December.
    14. Chi, Chang Koo & Murto, Pauli & Valimaki, Juuso, 2017. "All-Pay Auctions with Affiliated Values," MPRA Paper 80799, University Library of Munich, Germany.
    15. Attar, Andrea & Mariotti, Thomas & Salanié, François, 2019. "On competitive nonlinear pricing," Theoretical Economics, Econometric Society, vol. 14(1), January.
    16. Echenique, Federico, 2004. "A characterization of strategic complementarities," Games and Economic Behavior, Elsevier, vol. 46(2), pages 325-347, February.
    17. Pierre Dubois & Bruno Jullien & Thierry Magnac, 2008. "Formal and Informal Risk Sharing in LDCs: Theory and Empirical Evidence," Econometrica, Econometric Society, vol. 76(4), pages 679-725, July.
    18. Jacopo Bizzotto & Eduardo Perez-Richet & Adrien Vigier, 2020. "Communication via Third Parties," Working Papers 202006, Oslo Metropolitan University, Oslo Business School.
    19. Gilles Saint‐Paul & Davide Ticchi & Andrea Vindigni, 2016. "A Theory of Political Entrenchment," Economic Journal, Royal Economic Society, vol. 126(593), pages 1238-1263, June.
    20. Da Rin, Marco & Hellmann, Thomas, 2002. "Banks as Catalysts for Industrialization," Journal of Financial Intermediation, Elsevier, vol. 11(4), pages 366-397, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:oplwec:qt9z00731z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/lebrkus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.