The Regulation of Moral Hazard in Retail Transactions
<p>In transactions where costly efforts from both the seller and the buyer help prevent selling to the unfit buyer, the unique optimal law that restores the first-best requires the seller to refund the buyer and pay a punitive penalty of the buyer's loss. If the social planner can infer f...
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2014
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| Online Access: | http://hdl.handle.net/10161/9075 |