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Extending the Economic Theory of Regulation to the Form of Policy

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  • Rasmusen, Eric B
  • Zupan, Mark A

Abstract

The mutually beneficial connection between industries and the governments that regulate them is the subject of a large literature led by George Stigler (1971). What has not been studied is how firms choose their desired policies from the set including entry barriers, price floors, subsidies, and demand stimulation. The authors take as given that government and incumbents form the supply and demand for regulation and explore the choice of political product. Copyright 1991 by Kluwer Academic Publishers

Suggested Citation

  • Rasmusen, Eric B & Zupan, Mark A, 1991. "Extending the Economic Theory of Regulation to the Form of Policy," Public Choice, Springer, vol. 72(2-3), pages 167-191, December.
  • Handle: RePEc:kap:pubcho:v:72:y:1991:i:2-3:p:167-91
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    Cited by:

    1. Frank Buckley & Eric Rasmusen, 2000. "The Uneasy Case for the Flat Tax," Constitutional Political Economy, Springer, vol. 11(4), pages 295-318, December.
    2. Kang, Jae Hyeong & Lee, Sanghack, 2001. "The social cost of entry contest in Cournot-Nash oligopoly," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 139-152.
    3. Revesz, Richard & Stavins, Robert, 2004. "Environmental Law and Policy," Working Paper Series rwp04-023, Harvard University, John F. Kennedy School of Government.
    4. Lee, Sanghack & Cheong, Kiwoong, 2005. "Rent dissipation and social benefit in regulated entry contests," European Journal of Political Economy, Elsevier, vol. 21(1), pages 205-219, March.
    5. Asta Mikalauskiene & Justas Štreimikis & Ignas Mikalauskas & Gintarė Stankūnienė & Rimantas Dapkus, 2019. "Comparative Assessment of Climate Change Mitigation Policies in Fuel Combustion Sector of Lithuania and Bulgaria," Energies, MDPI, vol. 12(3), pages 1-25, February.
    6. Stavins, Robert & Keohane, Nathaniel & Revesz, Richard, 1997. "The Positive Political Economy of Instrument Choice in Environmental Policy," RFF Working Paper Series dp-97-25, Resources for the Future.
    7. Ando, Amy, 1998. "Do Interest Groups Compete?," RFF Working Paper Series dp-98-14, Resources for the Future.
    8. Stavins, Robert, 2005. "The Effects of Vintage-Differentiated Environmental Regulation," Working Paper Series rwp05-031, Harvard University, John F. Kennedy School of Government.
    9. Upadhyaya, Kamal P. & Raymond, Jeannie E. & Mixon, Franklin Jr., 1997. "The economic theory of regulation versus alternative theories for the electric utilities industry: A simultaneous probit model," Resource and Energy Economics, Elsevier, vol. 19(3), pages 191-202, August.

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