Case A: There are two businesses: S has excellent safety precautions while P doe

Case A: There are two businesses: S has excellent safety precautions while
P does not. Both offer the same wage for the same job. Employees are attracted
to S so P must improve to get future employees. You can use the same argument
for almost any benefit.
Case B: The same two firms but now firm P pays a higher wage (perhaps even
double). Does S lower their standards and raise wages? How can S attract
employees?
The discussion should center on when self-regulation works how to make it
more effective and areas where self-regulation cannot be used (and why). NOTE THIS IS AT A DOCTORATE LEVEL