accounting choices during import relief investigations, even if it requires
them to waive or amend covenants that are violated,17 since the financial
performance of the firm can be expected to improve if import relief is
granted. Managers would also benefit from obtaining import relief if the
future earnings of the firm are higher than without the relief and higher
earnings result in higher bonus payments. Thus, during import relief
investigations managers have less incentive to increase reported earnings
than they would at other times because it is in the best interests of all
contracting parties (except consumers) for the firm to obtain the desired
import protection.
3.1.2. Free-Rider Problem. The fact that all domestic producers within
an industry stand to benefit if import relief is granted results in a free-
rider problem. As a r