Published May 1979 | Version Submitted
Working Paper Open

The Effect of Uncertainty in Regulatory Delay on the Rate of Innovation

Abstract

When a regulated firm considers the undertaking of an effort to innovate, it often faces incentives quite different from those confronting an unregulated firm. At least three types of uncertainty arise. First, will an innovative effort result in an implementable technology, and if so, when? Second, will the implementation of the technology be delayed by a regulatory authority, and if so, for how long? And finally, when the regulator permits the use of an innovation, what level of benefits will the firm ultimately receive?

Additional Information

This research was supported in part under a DOE grant, EY-76-G-03-1305, EQL Block. I wish to thank the Environmental Quality Laboratory at California Institute of Technology for its assistance in this research. I would also like to thank Louis Wilde, James Quirk, Roger Noll, Linda Cohen, Burt Klein, and M. J. Peck for their helpful comments on an earlier draft. Published as Braeutigam, Ronald R. "The effect of uncertainty in regulatory delay on the rate of innovation." Law and Contemporary Problems 43.1 (1979): 98-111.

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Identifiers

Eprint ID
82425
Resolver ID
CaltechAUTHORS:20171017-134458507

Funding

Department of Energy (DOE)
EY-76-G-03-1305

Dates

Created
2017-10-17
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Updated
2019-10-03
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Caltech Custom Metadata

Caltech groups
Social Science Working Papers
Series Name
Social Science Working Paper
Series Volume or Issue Number
266