Examines policy design when the policy maker in imperfectly informed, focusing on cases where the regulated firm possesses better information about its technology than the regulator.

Contents:
1. Background: History and Related Literature 2. Adverse Selection 3. Auditing 4. Regulation and Moral Hazard 5. Multiperiod Models of Regulation and Information 6. Intertemporal Commitment 7. Interfirm Comparisons 8. Extensions and Future Directions