Three principles of competitive nonlinear pricing

We make three contributions to the theory of contracting under asymmetric information. First, we establish a competitive analog to the revelation principIe which we call the implementation principIe. This principIe provides a complete characterization of all incentive compatible, indirect contracting mechanisms in terms of contract catalogs (or menus), and allows us to conclude that in competi tive contracting situations, firms in choosing their contracting strategies can restrict attention, without loss of generality, to contract catalogs. Second, we establish a competi tive taxation principIe. This principIe, a refinement of the implementation principIe, provides a complete characterization of all implementable nonlinear pricing schedules in terms of product-price catalogs and allows us to reduce any game played over nonlinear pricing schedules to a strategically equivalent game played over product-price catalogs. Third, using the competitive taxation principIe and a recent result due to Reny (1999) on the existence of Nash equilibria in discontinuous games, we demonstrate the existence of a N ash equilibrium for the mixed extension of the nonlinear pricing game.

Enforcing international financial standards in Brazil: limits and possibilities for adoption of IOSCO principles

Foreign capital and institutional investors play a key role in the Brazilian capital and financial markets. Internationally promoted regulatory patterns, especially IOSCO principles, have been increasingly influencing administrative rule making by the Brazilian Securities and Exchange Commission (CVM) as well as the adoption of transnational rules in Brazil by means of self-regulatory activity. Even though there is a certain level of convergence of market regulatory standards at the transnational level, implementation and enforcement of rules remains essentially domestic. We analyze two case studies regarding the transposition of international standards into the Brazilian legal system, which illustrate this tension between the transnational and domestic dimensions of financial markets regulation. The first case concerns a CVM rule on disclosure of executive compensation and the its interpretation by local courts. The second case refers to the adoption of suitability rules.

O judiciário e a governança democrática dos recursos hídricos na região metropolitana: uma abordagem a partir do caso Matanza-Riachuelo

A previsão constitucional de competência concorrente dos entes políticos para a promoção de políticas públicas nas regiões metropolitanas abre caminho para que no caso de omissão dos poderes legislativos e executivos a questão seja judicializada. O Judiciário, como guardião dos direitos fundamentais e dos princípios democráticos, tem legitimidade para impor a cooperação entre os entes políticos a fim de que seja prestado um serviço publico eficiente e igualitário para todos os cidadãos. Essa atuação, contudo, está limitada aos princípios constitucionais e à vontade popular, além da existência de capacidade institucional e atenção aos efeitos sistêmicos. É apresentado o caso Matanza Riachuelo, em que o Judiciário condenou os entes políticos a promoverem, entre outras medidas, um plano estratégico comum. Ao final, apresenta-se uma visão crítica da atuação do Judiciário na execução desse julgado.