• Corpus ID: 18170768

The Enforcement Policy of a Self-Regulatory Organization

@inproceedings{DeMarzo2000TheEP,
  title={The Enforcement Policy of a Self-Regulatory Organization},
  author={Peter M. DeMarzo and Michael J. Fishman and Kathleen Hagerty},
  year={2000}
}
The federal government delegates various aspects of financial market regulation to self-regulatory organizations (SROs) such as the New York Stock Exchange and the National Association of Securities Dealers. We model one regulatory task of an SRO, the enforcement of rules designed to prevent the SRO's members from cheating customers. Specifically, we focus on the determination of an SRO's optimal policy for investigating agents who may have defrauded customers and the penalties associated with… 

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