Robert Axtell, “Optimality of Market-Based Regulations Depends Sensitively on the Profit Maximization Hypothesis” or “Command-and-Control Regulations Can Outperform Market-Based Mechanisms when Intra-Firm Behavior is Strategic”, The Brookings Institution, 2005. At http://rcgb.rutgers.edu/wp-content/uploads/2013/10/Team-Pollution.pdf