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Daniel Andrei

Daniel Andrei

Institution

McGill

PhD Year

2012

FTG Membership

Member

Website

http://danielandrei.info

Featured Work

The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Aug 1, 2025

Daniel Andrei, Lorenzo Garlappi

Regulating externalities is a major challenge when economic agents face uncertainty and disagreement. Traditional Pigouvian and Coasean approaches often struggle because they require either precise knowledge of externality costs or frictionless bargaining. We propose an "uncertainty-based regulation" (UBR) mechanism that leverages both uncertainty and firms' heterogeneous information to achieve socially efficient outcomes without requiring disclosure of private information. UBR adjusts firms' payoffs by adding a...

The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Jul 29, 2025

Daniel Andrei, Lorenzo Garlappi

Regulating externalities is a major challenge when economic agents face uncertainty and disagreement. Traditional Pigouvian and Coasean approaches often struggle because they require either precise knowledge of externality costs or frictionless bargaining. We propose an "uncertainty-based regulation" (UBR) mechanism that leverages both uncertainty and firms' heterogeneous information to achieve socially efficient outcomes without requiring disclosure of private information. UBR adjusts firms' payoffs by adding a...