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A Theory of Incentives in Procurement and Regulation » (1st Edition)

Book cover image of A Theory of Incentives in Procurement and Regulation by Jean-Jacques Laffont

Authors: Jean-Jacques Laffont, Jean Tirole
ISBN-13: 9780262121743, ISBN-10: 0262121743
Format: Hardcover
Publisher: MIT Press
Date Published: March 1993
Edition: 1st Edition

Author Biography: Jean-Jacques Laffont

Jean-Jacques Laffont is Professor of Economics at the Université des Sciences Sociales de Toulouse and the Institut Universitaire de France and Director of the Institut d'Economie Industrielle.

Jean Tirole is Scientific Director at the Institut d'Economie Industrielle, Researcher at CERAS (of the Ecole Nationale des Ponts et Chaussées), and Visiting Professor at the Massachusetts Institute of Technology.

Book Synopsis

Based on their pathbreaking work in the application of principal-agent theory to questions of regulation, Laffont and Tirole develop a synthetic approach, with a particular, though not exclusive, focus on the regulation of natural monopolies such as military contractors, utility companies, and transportation authorities.

	Foreword
	Acknowledgments
	Introduction	1
I	Price and Rate-Of-Return Regulation
1	Cost-Reimbursement Rules	53
2	Pricing by a Single-Product Firm With and Without Budget Balance	129
3	Pricing and Incentives in a Multiproduct Firm	165
4	Regulation of Quality	211
II	Product Market Competition
5	Competitive Ramsey Formulas and Access Pricing	247
6	Bypass and Cream Skimming	273
III	Bidding for Natural Monopoly
7	Auctioning Incentive Contracts	307
8	Repeated Auctions of Incentive Contracts, Investment, and Bidding Parity	341
IV	The Dynamics of Regulation
9	Dynamics Without Commitment and the Ratchet Effect	375
10	Commitment and Renegotiation	437
V	The Politics of Regulation
11	Regulatory Capture	475
12	Cost Padding, Auditing, and Collusion	515
13	Cartelization by Regulation	537
14	Auction Design and Favoritism	559
VI	Regulatory Institutions
15	Regulatory Instruments, Hearings, and Interest Group Monitoring	591
16	Commitment and Political Accountability	619
17	Privatization and Incentives	637
	Conclusion	661
	Review Exercises	671
	Index	695