Approval Regulation and Learning, with Application to Timing of Merger Control

  • Marco Ottavianiy, Abraham L. Wickelgrenz, +7 authors Scott Stern
  • Published 2009


This paper analyzes the optimal combination of ex ante and ex post regulation of an activity. Additional information about the sign and extent of the externality associated with the activity becomes available only once a private party undertakes the activity, but undoing the activity at that stage is costly. We characterize when the regulator should commit… (More)


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