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Freedom or efficiency? : an experimental approach to regulation

Wold, Olve Hagen
Master thesis
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URI
http://hdl.handle.net/11250/2454795
Date
2017
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  • Master Thesis [3258]
Abstract
Whether and how to regulate externalities and public goods is one of the most

central issues of political economy. It is also one of the areas with the largest discord

between economic theory and political reality. This paper examines the issue

from a new angle, using an economic experiment to elicit revealed norms about

regulation. It shows that regulatory preferences are highly sensitive to potential

efficiency gains. It also reveals that norms about regulation are highly heterogeneous,

and that a large minority are apparently unwilling to trade reductions in

autonomy for any increase in efficiency.

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