Welfare enhancing regulation exemptions
Document Type
Article
Publication Date
12-2011
Journal Title
International Review of Law and Economics
ISSN
0144-8188
DOI
10.1016/j.irle.2011.06.002
Abstract
Sanctions for regulation violations are used to deter conduct which could potentially result in great social harms. This practice over-deters low-risk entities and under-deters high-risk entities, which leads to social losses. This paper analyzes whether and how such social losses can be mitigated. I show that this can be achieved by allowing regulatees to purchase passes exempting them from regulations at appropriate prices, although they remain liable for any harm they cause.
First Page
249
Last Page
255
Num Pages
7
Volume Number
31
Issue Number
4
Publisher
Elsevier
Recommended Citation
Murat C. Mungan,
Welfare enhancing regulation exemptions,
31
Int'l Rev. L. & Econ.
249
(2011).
Available at:
https://scholarship.law.tamu.edu/facscholar/1885