Public versus Private Information Provision
27 Pages Posted: 28 Nov 2012 Last revised: 14 Jul 2013
Date Written: July 14, 2013
When is it better for the government to provide information, and when is this role better left to the market? I present a simple framework for evaluating this question, where the key factors are the cost of errors based on imperfect information and whether information is eventually revealed to consumers. I then apply the framework to examples.
Keywords: information, regulation, licensing
JEL Classification: D82, L51
Suggested Citation: Suggested Citation