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The case for market-based regulation.
- Article from:
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The Cato Journal
- Article date:
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September 22, 2006
- Author:
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;
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Copyright informationCOPYRIGHT 2006 Cato Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In this article, we reconsider the rationale for government regulation of markets. We begin by identifying markets as governed not only by prices but also by evolved institutions, rules, and standards. We then analyze how this complex order regulates human behavior, discuss the case for adding a layer of government regulation to the market's own regulatory system, and present a number of case studies to clarify the issues.
Our focus is not on the familiar public choice criticism of government regulation--namely, that regulation is more about the pursuit of economic rents than protecting the so-called public interest. While that criticism is correct and we make reference to ...
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