Packet 1: Tossup 7

It’s not a market structure, but these things cause overinvestment in capital in the Averch-Johnson Effect. These things contrast with “procurement” in Laffont and Tirole’s three-tiered 1993 model, which argues that they should be “a menu of incentive contracts.” These things are the original subject of Bruce Yandle’s theory of “Bootleggers and Baptists.” The “public interest” theory of these things is opposed by a seminal paper (-5[1])on “The Theory of” their “Economic” (-5[1])form by George (*) Stigler. These things (10[1])undergo (-5[1])the “notice and comment” process. (10[5])As an (10[1])adjective, (10[4]-5[1])these things (10[1])name a scenario (10[1])in which people making them are unduly (10[1])swayed by interest groups; (10[1])rent-seeking ensues (10[1])from that namesake (10[1])type (-5[1])of “capture.” (10[5]-5[1])For (10[1])10 points, (10[7])name (10[1])these administrative (-5[1])rules (-5[1])set by governments that limit (10[1])the actions of firms. (10[6]0[2])■END■

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