PAP3902 Lecture Notes - Lecture 3: Perfect Information, Vehicle Insurance, Natural Monopoly

• School: University of Ottawa
• Department: Public Administration
• Course: PAP3902
• Professor: Vlasios Melansakis

Document Summary

How you define it affects how you view it ex. Traditionally, in pp, you have 5 policy tools/instruments at your disposal: exhortation: can be a form of convincing, proving optimism/pessimism, symbolic gestures. Maki(cid:374)g a spee(cid:272)h re(cid:272)og(cid:374)izi(cid:374)g so(cid:373)ething: expenditure: spending moneycan be on anything, collalory to that is taxation can use it to influence behaviour. Stop or reduce the incentive or to encourage something: regulation: allowing or disallowing something to happen. Directly influencing human behaviour: sticks out though, for everything else, you can directly follow and track results. In fact, it creates a false sense of security, people speed more. So it may have created some accidents and may have stopped one: ex. One political side said, ah zero clearly a failure it (cid:272)aught (cid:374)o o(cid:374)e. other side, (cid:449)as(cid:374)"t that the goal, or having zero attacks, we must have deterred everyone! Regulation is so controversial because you cannot see the direct effects.