“In Search” of Good Government

For those who are searching for the roots of regulatory failure, the recent revelations of heavy porn surfing at SEC during the greatest financial collapse since the Great Depression might prove entertaining and pathetic.

Ah, the hedonic calculus at work.

One wonders whether there is some connection between this regulatory quest for full disclosure and the recent fascination of regulators with videos (as noted in an earlier post).

One also wonders whether this will have any implications for the modeling of principal-agent relations or the assumption (a bit shopworn by now) that bureaucrats engage in budget maximizing behavior.

2 thoughts on ““In Search” of Good Government

  1. Would it be wrong to say that these regulators, contrary to their usual tendencies, were interested in increasing self-government?

  2. I’d like to know how close these employees work with each other (e.g. same department, neighboring desks, etc). Are the costs associated with such behavior so low that 33 employees independently found the risks worth it? Or did it start with one or two employees who spread the practices to coworkers? Either case should raise concern about how the bureaucracy is run.

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