Market-regulation is often imposed on industries that generate substantial external costs; restaurants are responsible
for majority of foodborne illness in the nation. Data on restaurant inspections for the years 2020, 2021, and January 1,
2022 – May 10, 2022, were processed to gain insights into firm behavior. An analysis of 23,683 cases reveals that 56% of
the inspections reported illness-risk-factor violations and retail-practices violations; only 15% of the inspections had
no violations.