Collective penalities and inducement of self-reporting
Random accidents can be contained by collective penalties. These penalties are not likely to be enforced but rather induce self-reporting that enhances welfare due to early containment. Self-reporting under collective penalties increases overall welfare, but may increase expected environmental cost....
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ftrepec:oai:RePEc:mse:wpsorb:v06048 2024-04-14T08:09:23+00:00 Collective penalities and inducement of self-reporting Katrin Millock David Zilberman https://halshs.archives-ouvertes.fr/halshs-00118778 unknown https://halshs.archives-ouvertes.fr/halshs-00118778 preprint ftrepec 2024-03-19T10:38:03Z Random accidents can be contained by collective penalties. These penalties are not likely to be enforced but rather induce self-reporting that enhances welfare due to early containment. Self-reporting under collective penalties increases overall welfare, but may increase expected environmental cost. Even when regulation is constrained by an upper limit on the acceptable collective penalty, the threat of collective penalties can induce an incentive-compatible mutual insurance scheme under which a side-payment is made to the agent that self-reports an accident. This self-reporting mechanism is welfare-improving, but first-best outcomes can only be obtained when the collective penalty is unconstrained, or when an honor system applies. In cases when there is a new externality that requires fast response (avian flu),collective penalties can compliment or substitute for monitoring Ambient tax; collective penalties; enforcement; self-reporting Report Avian flu RePEc (Research Papers in Economics) |
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Random accidents can be contained by collective penalties. These penalties are not likely to be enforced but rather induce self-reporting that enhances welfare due to early containment. Self-reporting under collective penalties increases overall welfare, but may increase expected environmental cost. Even when regulation is constrained by an upper limit on the acceptable collective penalty, the threat of collective penalties can induce an incentive-compatible mutual insurance scheme under which a side-payment is made to the agent that self-reports an accident. This self-reporting mechanism is welfare-improving, but first-best outcomes can only be obtained when the collective penalty is unconstrained, or when an honor system applies. In cases when there is a new externality that requires fast response (avian flu),collective penalties can compliment or substitute for monitoring Ambient tax; collective penalties; enforcement; self-reporting |
format |
Report |
author |
Katrin Millock David Zilberman |
spellingShingle |
Katrin Millock David Zilberman Collective penalities and inducement of self-reporting |
author_facet |
Katrin Millock David Zilberman |
author_sort |
Katrin Millock |
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Collective penalities and inducement of self-reporting |
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Collective penalities and inducement of self-reporting |
title_full |
Collective penalities and inducement of self-reporting |
title_fullStr |
Collective penalities and inducement of self-reporting |
title_full_unstemmed |
Collective penalities and inducement of self-reporting |
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collective penalities and inducement of self-reporting |
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https://halshs.archives-ouvertes.fr/halshs-00118778 |
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Avian flu |
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Avian flu |
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https://halshs.archives-ouvertes.fr/halshs-00118778 |
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1796306887229046784 |