The implementation of the Automatic Enforcement System (AES) is proving to be so controversial that even federal backbenchers are joining the federal opposition in criticizing the system. For the uninitiated, the AES is a privately-financed and operated system of speed traps under the purview of the Road Transport Department (JPJ). It has two functions: catch […]

Here is a microeconomic contract theory puzzle with the incentives do not quite line up perfectly. According to the Financial Daily today, the MRT project delivery partner (a joint venture between MMC Corp and Gamuda) will be punished by the project owner if the cost of the project exceeds 15% of some base. Any cost […]