Learning in Bayesian regulation: desirable or undesirable?
Author
Koray, S.
Saglam, I.
Date
2007Source Title
Economics Bulletin
Print ISSN
1545-2921
Publisher
Economics Bulletin
Volume
3
Issue
12
Pages
1 - 10
Language
English
Type
ArticleItem Usage Stats
66
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22
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Abstract
We examine the social desirability of learning about the regulated agent in a generalized principal-agent model with incomplete information. An interesting result we obtain is that there are situations in which the agent prefers a Bayesian regulator to have more, yet incomplete, information about his private type.