Sectors with a long regulatory tradition have recently experienced intense activity by multinationals whose international operations and relocation threats represent a new cause for concern for regulators. I analyse a multinational serving two countries and being regulated by two national authorities. The firm is shown to favor, or cross-subsidize, the country with a larger stake in the firm's profit and the linkage among national regulations may induce unexpected effects on outputs. I also analyze multinational's lobbying decisions and its effects on national regulations. Finally, a credible threat to "fly" away from tough regulators lets the firm obtain larger profits.

G. Calzolari (2004). Incentive Regulation of Multinational Enterprises. INTERNATIONAL ECONOMIC REVIEW, 45-1, 257-282.

Incentive Regulation of Multinational Enterprises

CALZOLARI, GIACOMO
2004

Abstract

Sectors with a long regulatory tradition have recently experienced intense activity by multinationals whose international operations and relocation threats represent a new cause for concern for regulators. I analyse a multinational serving two countries and being regulated by two national authorities. The firm is shown to favor, or cross-subsidize, the country with a larger stake in the firm's profit and the linkage among national regulations may induce unexpected effects on outputs. I also analyze multinational's lobbying decisions and its effects on national regulations. Finally, a credible threat to "fly" away from tough regulators lets the firm obtain larger profits.
2004
G. Calzolari (2004). Incentive Regulation of Multinational Enterprises. INTERNATIONAL ECONOMIC REVIEW, 45-1, 257-282.
G. Calzolari
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/8026
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