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This book reviews and interprets the literature that examines the design of regulatory policy when the regulator's knowledge of the relevant environment is limited. It will be useful to professional economists wishing to keep up with the development of their science.
1. Background: History and Related Literature 2. Adverse Selection 3. Auditing 4. Regulation and Moral Hazard 5. Multiperiod Models of Regulation and Information 6. Intertemporal Commitment 7. Interfirm Comparisons 8. Extensions and Future Directions.