We thank Dana Brudowsky for editorial assistance. However, we assume that neither economists and public officials, on the one side, nor private actors, on the other, know where the relevant distortions are. A key feature of the policy process is to identify them, or, more precisely, to organize "searches" to identify and respond to them. Furthermore, we assume that these distortions are very high dimensional. They implicate many different markets and inputs, each relatively specific to a

more »

... of existing and potential activities. Solutions to the distortions correspondingly require