Allocating Law-Making Powers: Self-Regulation vs. Government Regulation
Peter Grajzl and Peter Murrell
,
3
(
35
)
Journal of Comparative Economics
520-545
September
2007
AllocatingLawMakingPowers.pdf294.81 KB
Abstract
Self-regulation is common, but comparative analysis of self-regulation and government regulation is rare. This paper identifies conditions determining whether regulation is delegated or centralized, analyzing the welfare implications of regulatory regime choice. Because regulatory authority determines who controls residual lawmaking, property rights theory provides the natural analytical framework, leading to a focus on trade-offs between efficient lawmaking by regulators and government–producer bargaining.