Nicolas Petit @competitionprof.bsky.social · 25/04/2025A time inconsistent policy has the allure of efficiency. The false negative is reversed. But econ say that time-inconsistent policies also lead to moral hazard 4/n 110
Nicolas Petit @competitionprof.bsky.social · 25/04/2025Flood zones are a good illustration: the Gov states a “no bailout" rule, but always pays after a flood. The result? People build in flood zones 5/n 100
Nicolas Petit @competitionprof.bsky.social · 25/04/2025Now, back to antitrust: if the FTC or US DOJ is given discretion to unwind deals years later using antitrust law, merger approval becomes un-credible. Cleared no longer means cleared 6/n 100
