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Even Giants Need A Club: Domestic Institutions, Market Size, And Regulatory Influence

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  • DAVID BACH

    (Instituto de Empresa)

Abstract

This paper show that work on international market regulation has paid insufficient attention to the critical role played by domestic political and regulatory institutions. Existing literature emphasizes the role of market power, determined by market size, in analyzing international regulatory influence. While we do not contest the importance of market power, we introduce the notion of domestic regulatory capacity to capture the domestic institutional side of international market regulation that previous work has sidestepped. Domestic regulatory capacity is the missing link between latent market power vested in market size and international influence activated through regulatory institutions.

Suggested Citation

  • David Bach, 2005. "Even Giants Need A Club: Domestic Institutions, Market Size, And Regulatory Influence," Working Papers Economia wp05-15, Instituto de Empresa, Area of Economic Environment.
    • Handle: RePEc:emp:wpaper:wp05-15
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