Legal Standards and Incomplete Monitoring
The Law and Economics of Privacy, Personal Data, Artificial Intelligence, and Incomplete Monitoring
ISBN: 978-1-80262-002-3, eISBN: 978-1-80262-001-6
Publication date: 22 March 2022
Abstract
Regulators can adjust penalties to compensate for incomplete monitoring of regulated parties that are subject to legal rules, but compensating penalty adjustments often are unavailable when regulated parties are subject to legal standards. Incomplete monitoring consequently invites greater noncompliance under standards than under rules. This chapter develops a model that quantifies some of the specific tradeoffs that regulators face in designing standards regimes under incomplete monitoring. The model also considers the extent to which suboptimal compliance due to incomplete monitoring is likely to result in deadweight loss in different settings.
Keywords
Citation
Hasen, D. (2022), "Legal Standards and Incomplete Monitoring", Langenfeld, J., Fagan, F. and Clark, S. (Ed.) The Law and Economics of Privacy, Personal Data, Artificial Intelligence, and Incomplete Monitoring (Research in Law and Economics, Vol. 30), Emerald Publishing Limited, Leeds, pp. 109-170. https://doi.org/10.1108/S0193-589520220000030010
Publisher
:Emerald Publishing Limited
Copyright © 2022 David Hasen. Published under exclusive licence by Emerald Publishing Limited