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on Regulation |
| By: | Akshay Jaitly (TrustBridge Rule of Law Foundation); Charmi Mehta (xKDR Forum); Rishika Ranga (TrustBridge Rule of Law Foundation); Renuka Sane (TrustBridge Rule of Law Foundation); Ajay Shah (xKDR Forum); Karthik Suresh (xKDR Forum) |
| Abstract: | Electricity reform in Tamil Nadu faces many difficulties. One element of this is the problem of regulation. The anticipated behaviour of the regulator in the future constitutes one element of the negative environment which shapes the hesitation of the private sector to invest. In this paper, we bring knowledge from the field of regulatory theory, which has been developed in India over the last 20 years, to shed new light on the problems of electricity regulation in Tamil Nadu. Some of the problems identified here are rooted in the drafting of the Electricity Act, 2003, which cannot be changed by policymakers in Tamil Nadu. However many of the problems can be addressed using policy levers available to policymakers in Tamil Nadu. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:bjd:wpaper:9 |
| By: | Philip Moreira Tomei; Rupal Jain; Matija Franklin |
| Abstract: | This paper argues that market governance mechanisms should be considered a key approach in the governance of artificial intelligence (AI), alongside traditional regulatory frameworks. While current governance approaches have predominantly focused on regulation, we contend that market-based mechanisms offer effective incentives for responsible AI development. We examine four emerging vectors of market governance: insurance, auditing, procurement, and due diligence, demonstrating how these mechanisms can affirm the relationship between AI risk and financial risk while addressing capital allocation inefficiencies. While we do not claim that market forces alone can adequately protect societal interests, we maintain that standardised AI disclosures and market mechanisms can create powerful incentives for safe and responsible AI development. This paper urges regulators, economists, and machine learning researchers to investigate and implement market-based approaches to AI governance. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.17755 |
| By: | Simon Martin; Hans-Theo Normann; Paul Püplichhuisen; Tobias Werner |
| Abstract: | We study the propensity of independent algorithms to collude in repeated Cournot duopoly games. Specifically, we investigate the predictive power of different oligopoly and bargaining solutions regarding the effect of asymmetry between firms. We find that both consumers and firms can benefit from asymmetry. Algorithms produce more competitive outcomes when firms are symmetric, but less when they are very asymmetric. Although the static Nash equilibrium underestimates the effect on total quantity and overestimates the effect on profits, it delivers surprisingly accurate predictions in terms of total welfare. The best description of our results is provided by the equal relative gains solution. In particular, we find algorithms to agree on profits that are on or close to the Pareto frontier for all degrees of asymmetry. Our results suggest that the common belief that symmetric industries are more prone to collusion may no longer hold when algorithms increasingly drive managerial decisions. |
| Keywords: | algorithmic collusion, Cournot duopoly, asymmetric firms |
| JEL: | C73 D43 L13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11629 |
| By: | Bryan Bollinger; Kenneth Gillingham; A. Justin Kirkpatrick |
| Abstract: | Individuals trade present for future consumption across a range of economic behaviors, and this tradeoff may differ across socioeconomic groups. To assess these tradeoffs, we estimate a dynamic model of residential solar adoption and system sizing in California using household-level data on solar irradiance, electricity consumption, and electricity rates that offer plausibly exogenous variation in the future benefits from adopting relative to upfront costs. We find implicit discount rates of 15.3%, 13.8%, and 10.0% for low-, medium-, and high-wealth households. Counterfactual simulations demonstrate opportunities to reduce the regressivity of solar adoption, increase policy cost-effectiveness, and improve welfare for low-wealth households. |
| Keywords: | solar, discount rates, energy policy, distributional impacts, dynamic discrete choice models |
| JEL: | L94 Q48 H23 D12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11627 |
| By: | Luke Garrod; Ruochen Li; Antonio Russo; Chris M. Wilson |
| Abstract: | There is limited theoretical understanding of cost pass-through within markets where prices are dispersed. Under a general demand function, we analyse the effects of cost changes in a seminal model of price dispersion, where some consumers are captive to particular sellers while others are not (Varian, 1980). To study pass-through in this mixed-strategy context, we employ a novel approach that links well to the pass-through literature in pure-strategy settings. Following an industry-wide cost increase, we show how the magnitudes of price rises faced by different consumer types, as well as the wider effects on price dispersion, depend upon whether demand is log-concave or log-convex. Furthermore, we examine whether the burden of the cost increase is expected to fall more heavily on captive or non-captive consumers. Finally, we show how our results vary with the level of competition and analyse the relationship between pass-through and demand shocks under price dispersion. |
| Keywords: | cost pass-through, price dispersion, demand curvature, competition, demand shocks |
| JEL: | D43 L13 D83 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11635 |
| By: | Liliana Rojas-Suarez (Center for Global Development) |
| Abstract: | Basel III—the international standard for banking regulation—has strengthened global financial stability but has also led to unintended consequences that may hinder progress toward key Sustainable Development Goals (SDGs). This paper examines how Basel III’s regulatory framework may restrict bank lending to SMEs (impacting SDG 10) and constrain infrastructure finance (impacting SDG 8). Addressing these challenges requires refining risk assessment methodologies while preserving Basel III’s core objective: accurate risk evaluation. For SMEs, tailoring risk weights using local credit registry data can better reflect economic conditions in emerging markets. For infrastructure, recognizing it as a distinct asset class and leveraging credit risk mitigation tools could improve financing. Greater engagement from multilateral institutions, particularly the World Bank, is essential to advancing these solutions while maintaining financial stability. |
| Keywords: | Basel III, Sustainable Development Goals, Infrastructure Finance, SME Lending |
| JEL: | G21 G28 O1 O18 |
| Date: | 2025–02–10 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:ppaper:351 |
| By: | Sergey Kokovin; Alina Ozhegova; Shamil Sharapudinov; Alexander Tarasov; Filipp Ushchev |
| Abstract: | Our novel approach to modeling monopolistic competition with heterogeneous firms and consumers involves spatial product differentiation, in either a geographical space or a space of characteristics. In addition to price, each firm chooses location in space. We formulate conditions for positive sorting—more-productive firms serve larger market segments and face tougher competition—and for existence and uniqueness of equilibrium. To quantify the role of sorting, we calibrate the model using haircut market data and perform counterfactual analysis. Inequality in gains among consumers caused by positive market shocks can be substantial: gains for consumers at more-populated locations are three to four times higher. (JEL D11, D24, D43, L13, L84) |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/387736 |
| By: | FOSTER Gillian (European Commission - JRC); KASTANAKI Eleni; BEAUSON Justine; NEUWAHL Frederik (European Commission - JRC); MARSCHINSKI Robert (European Commission - JRC) |
| Abstract: | Circular Economy Strategies for the EU's Renewable Electricity is a Joint Research Centre (JRC) exploratory study that provides a new perspective and new evidence on waste streams emerging from the transition to renewable electricity in the EU. The analysis supports the policy-making process and the JRC’s research on clean energy technologies implementing the European Green Deal, 2030 Climate and Energy Framework, Renewable Energy Directive, and the Waste Framework Directive. The report summarises the available information on the topic (technologies, waste streams, relevant literature and data, and technical, economic and information challenges). The clean energy technologies contain substances covered by the Critical Raw Materials Act; although the report does not focus on the permanent magnets and rare earth minerals associated with renewable energy, mostly wind turbines. Instead, the report highlights potential priority waste streams such as steel, cement and silicon. It provides a strategic assessment highlighting the rapid increase of wastes driven by the energy transition’s demand for technologies and infrastructure to replace fossil fuel infrastructures. Policy-relevant strategies to address gaps in regulation and research are highlighted. The report demonstrates that future waste volumes from solar and wind electricity generation in the EU are complex and will be generated in far greater quantities and at different rates than previously estimated. In addition, the report quantifies the waste footprint of decommissioning fossil fuel electricity plants. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138570 |
| By: | Vey, Meike (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Namockel, Nils (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Ruhnau, Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Electric mobility and renewable energy play key roles in the global energy transition. In this context, vehicle-to-grid technology, which enables bidirectional energy flow between electric vehicles and the grid, could make electric vehicles usable as energy storage units, thus supporting grid stability and integration of renewable energy. However, the willingness of electric vehicle owners to participate in vehicle-to-grid contracts remains insufficiently understood, particularly regarding how they respond to specific contract attributes. This paper addresses this gap by conducting a discrete choice experiment to evaluate the preferences of current and potential future German electric vehicle drivers for various vehicle-to-grid contract alternatives. We find that cycle-based remuneration, flexible contract duration, and environmental nudging significantly enhance consumer acceptance. Conversely, a lower guaranteed battery level and longer minimum plug-in durations negatively impact participation. We also test how respondent characteristics influence participation and identify income-dependent preferences, such as lower-income individuals attributing a stronger preference to fixed daily payments than higher-income individuals. Our differentiated őndings may be used to improve contract designs and marketing efforts to address the unique V2G preferences of various user segments. |
| Keywords: | Vehicle-to-grid; Discrete choice experiment; Willingness to accept; Preferences; Bidirectional charging |
| JEL: | C25 D12 Q42 Q48 Q51 Q58 R41 |
| Date: | 2025–02–06 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2025_001 |
| By: | Yannick Gabuthy (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Nicolas Jacquemet (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Olivier L’haridon (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, IUF - Institut universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche) |
| Abstract: | Law and economics primarily focus on various legal rules' capacity to rectify structural inefficiencies stemming from market failures, such as those related to preventive or criminal behaviors. Recent advancements in behavioral economics provide valuable insights into how economic agents respond to the rules they face, offering new perspectives for designing a range of legal rules and procedures. This article provides an overview of these developments as they apply to civil liability regimes, the design of criminal procedure, and criminal policy. |
| Abstract: | Longtemps confinée à l'efficacité de la protection des droits de propriété nécessaires aux échanges de marché, l'analyse économique du droit trouve en grande partie ses origines dans la nécessité de pallier les défaillances de marché associées à la remise en cause des conditions qui rendent leur fonctionnement efficace. Cette branche de l'économie s'intéresse en particulier à la capacité de différentes règles juridiques à corriger les inefficacités structurelles qui en découlent, par exemple en matière de comportements de prévention des risques liés aux activités humaines ou encore de comportements délictuels. Les développements récents de l'économie comportementale apportent un éclairage nouveau sur la réponse des acteurs de l'économie aux règles qui leur sont appliquées, et conduisent en particulier à un renouvellement profond des recommandations de l'économie en matière d'élaboration des règles de droit. Cet article en présente un panorama, appliqué notamment aux régimes de responsabilité civile et aux modalités d'application de la politique pénale. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:pseptp:hal-04673346 |
| By: | Sukjin Han; Kyungho Lee |
| Abstract: | Copyright policies play a pivotal role in protecting the intellectual property of creators and companies in creative industries. The advent of cost-reducing technologies, such as generative AI, in these industries calls for renewed attention to the role of these policies. This paper studies product positioning and competition in a market of creatively differentiated products and the competitive and welfare effects of copyright protection. A common feature of products with creative elements is that their key attributes (e.g., images and text) are unstructured and thus high-dimensional. We focus on a stylized design product, fonts, and use data from the world's largest online marketplace for fonts. We use neural network embeddings to quantify unstructured attributes and measure the visual similarity. We show that this measure closely aligns with actual human perception. Based on this measure, we empirically find that competitions occur locally in the visual characteristics space. We then develop a structural model for supply and demand that integrate the embeddings. Through counterfactual analyses, we find that local copyright protection can enhance consumer welfare when products are relocated, and the interplay between copyright and cost-reducing technologies is essential in determining an optimal policy for social welfare. We believe that the embedding analysis and empirical models introduced in this paper can be applicable to a range of industries where unstructured data captures essential features of products and markets. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.16120 |
| By: | Joaquín Saldain |
| Abstract: | I study the welfare consequences of regulations on high-cost consumer credit in the United States. I estimate a heterogeneous-agents model with uninsurable idiosyncratic risk, risk-based pricing of loans, and preference heterogeneity including households with self-control issues. I find that one-third of high-cost borrowers suffer from self-control issues. Noncontingent regulatory borrowing limits have distributional consequences within households with self-control issues. High-income households benefit from restrictions on borrowing because they face loose price schedules from lenders that allow them to overborrow. Low-income households face tight individually targeted loan price schedules that limit households’ borrowing capacity so that borrowing restrictions cannot improve welfare over them. |
| Keywords: | Credit and Credit Aggregates; Financial markets; Interest rates |
| JEL: | E71 E2 G51 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:25-6 |
| By: | Werner, Dominick; Adam, Martin; Benlian, Alexander |
| Abstract: | Website providers find it increasingly difficult to convince users to accept advertisements (ads) on their websites. In this study, we investigate ad quantity customization (AQC) as a practice to counter these challenges. AQC refers to the technological means through which website providers enable users to determine the amount of ads displayed on their websites. Drawing on psychological empowerment theory, we demonstrate in an online experiment with 395 participants that AQC can pay off: A website with AQC elicits significantly higher website stickiness than a website without AQC, even if the website without AQC contains no ads at all. We furthermore find that perceived empowerment, informational fit-to-task and perceived enjoyment mediate the effect of AQC on website stickiness. Our study thus contributes to Information Systems research on web customization and offers website providers actionable recommendations to keep their users involved, interested and retained. |
| Date: | 2025–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:152502 |
| By: | Mahirah Mahusin (Economic Research Institute for ASEAN and East Asia (ERIA)); Hilmy Prilliadi (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | Spam remains a critical issue in the digital landscape, despite its slight global decline. In 2023, spam accounted for 45.6% of global emails and remains a major vector for malware and phishing attacks. Within ASEAN, spam-related issues challenge productivity, cybersecurity, and consumer protection. To address these challenges, ASEAN Member States have initiated various anti-spam measures, guided by regional frameworks such as the ASEAN Digital Masterplan 2025 and the ASEAN–China Initiative on Enhancing Cooperation on E-commerce. However, the diversity of anti-spam legislation – particularly the variance between opt-in and opt-out models – complicates cross-border enforcement. This policy brief advocates for a harmonised approach to spam regulation, drawing on international best practices. Recommendations include adopting an opt-in model for better cross-border enforcement, strengthening consumer education, investing in advanced spam-filtering technologies, and enhancing regional cooperation through frameworks like the Regional Comprehensive Economic Partnership agreement and the ASEAN–Australia–New Zealand Free Trade Area to ensure consistency and effectiveness in combating spam across ASEAN. Latest Articles |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:pb-2024-15 |
| By: | Simona Franguloiu (Institute of Legal Research “Acad. Andrei Rădulescu†of the Romanian Academy, Romania) |
| Abstract: | The rule of law, fundamental to the majority of states today, cannot be conceived without justice. Lawyers, by exercising the prerogatives at their disposal, are a central element of the justice system, with the right and obligation to ensure that the rights of individuals are not neglected or jeopardized, while the judiciary has the task and the right to resolve legal disputes arising from actions that fall within the ambit of unlawful. In this system of justice, the right to a defense is an ancient concept firmly rooted in legal mentality, without which the very idea of justice is inconceivable. The development of this right has culminated in its elevation to the status of a fundamental principle of the trial, compliance with which must be absolute. Only in this way is it possible to respond to the imperative requirement imposed by the rule of law. One of the necessary conditions for its full realization, in the context of globalization, is the protection of the legal profession through a flexible and efficient international instrument, with effective and dissuasive guarantees for those who violate these rules and easy to integrate into the national laws of the States parties. |
| Keywords: | International Law, International Convention, Legal Profession Protection, Fundamental Rights |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0446 |
| By: | Julia M. Puaschunder (Columbia University, United States) |
| Abstract: | During a time when there is debate about governmental efficiency, this article offers a speculative economic analysis of the potential benefits and challenges of the idea to improve efficiency in governmental affairs. Obvious benefits include cost savings and efficiency improving public service speed and quality perception. Creating fiscal space via efficiency savings is a novel elegant way to fund multiplier actions that can trickle down the economy and improve citizens’ quality of life and wellbeing. Setting incentives to perform and inspiring public endeavors with entrepreneurial business acumen but also the scrutiny of being held accountable for performance promise to innovatively ignite endogenous growth drivers into public service. Savings directed to enhance public causes ranging from education, healthcare, investments, security and culture in a more efficient way will build public support of the government and breed trust in society and bestow social capital in the economy. Challenges may include the legal nature of the advisory commission and its legal and executive capabilities to enact change. If efficiency and cost-cutting measures lead to layoffs of public officials, the consequence may be that the private sector gets an influx of the less-efficiently perceived public servants, which may cause the private sector to be facing less entrepreneurial but regulatory-minded workers. Transfer of social security savings from the public into private sector employment may cause frictions and/or additional administrative hurdles. If bold projects of enacting efficiency are successful in leading countries of the world, this may set an example to be replicated around the world. While nations that follow the trend early and successfully may be enabled to advance themselves as public efficiency leaders, less efficient governments have a larger margin of improvement potential and hence comparative gain advantages when learning from governmental efficiency proponent countries. |
| Keywords: | Accountability, Costs and Benefits, Law Economics, Government Efficiency, New Public Management, Public Service |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0480 |