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Microeconomics suggests another approach: putting a price on noise.Fining people for making a din would surely dissuade the polluter and is a neat solution in theory, but it requires costly monitoring and enforcement.
For instance, Martin (1988) and Brickley and Dark (1987) focus on costly monitoring in remote geographical areas.
It is difficult to generate high levels of efficiency in teams or cooperatives with imperfect or costly monitoring.
Finally, even if we find effective ways to deal with costly monitoring, asymmetric information and the like, market discipline only works up to a point.
This paper studies the second-best tax design problem when emissions are publicly unobservable but can be discovered through costly monitoring.
The proper balance between costly monitoring and non-compliance have often been studied, however, the costs of monitoring from landowners' perspective have only received little attention.
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PAGE A6 WI-FI RESTRICTIONS IN CHINA New regulations in China that require bars, restaurants and hotels to install costly Web monitoring software are prompting many businesses to cut Internet access.
BEIJING — New regulations that require bars, restaurants, hotels and bookstores to install costly Web monitoring software are prompting many businesses to cut Internet access and sending a chill through the capital's game-playing, Web-grazing literati who have come to expect free Wi-Fi with their lattes and green tea.
However, frequent measurement of common heavy metals such as Zn, Cd, Cr, Pb, Cu and Ni in moss can be costly for monitoring large areas.
We illustrate the general mechanism by showing that in the presence of members of the public that are willing and able to report violations to the regulator at a cost to themselves, uniform rules allow substituting third-party participation for costly own monitoring.
Sometimes consumers sign up for what they expect is a free credit score only to be duped into enrolling in costly credit monitoring services.
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