Jean Tirole: Market Failures and Public Policy

Jean Tirole, the 2014 recipient of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, spoke to students about how breakthroughs in industrial organization, game theory, and information economics led him to apply economic tools to crafting more effective systems of regulation.
If you experience technical difficulties with this video or would like to make an accessibility-related request, please send a message to [e-mail].

[@michaellewis7861]

High incentive scheme elicit higher effort but leave higher rents on the table.
For high power incentive to be credible you have to have committment power

[@michaellewis7861]

If you try under political message reassure to capture the profit ex post, it’s anticipation m retards the sense of necessity to exert effort.