IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/51328.html
   My bibliography  Save this paper

Self-regulation as a remedy for market turmoil: An over-the-counter or a prescription drug?

Author

Listed:
  • Senderski, Marcin

Abstract

The paper tackles the problem of the overwhelming regulatory burden that marks its presence in a post-crisis environment. With evidence of regulatory overload in some cases, paths for more effective design of regulatory frameworks should be sought. Although self-regulation does not enjoy favorable publicity and happens to fail to prove its value in times of distress, it still may serve as a remedy. A number of studies shows that, under specific circumstances, the self-regulatory framework may operate seamlessly for the benefit of all stakeholders. The goal of this paper is to identify these circumstances and validate them on the basis of three concise case studies from the health care, advertising and financial services industry. It is instructive for policy makers in deciding on whether to abandon or reduce public oversight in certain areas, by allowing businesses more freedom in terms of setting and enforcing the rules.

Suggested Citation

  • Senderski, Marcin, 2012. "Self-regulation as a remedy for market turmoil: An over-the-counter or a prescription drug?," MPRA Paper 51328, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51328
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/51328/1/MPRA_paper_51328.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lazzarini, Sergio G. & Carvalho de Mello, Pedro, 2001. "Governmental versus self-regulation of derivative markets: examining the U.S. and Brazilian experience," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 185-207.
    2. Marianne Ojo, 2011. "Co‐operative and competitive enforced self regulation," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 19(2), pages 139-155, May.
    3. Paul L. Joskow, 2010. "Market Imperfections versus Regulatory Imperfections," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(03), pages 3-7, October.
    4. Alex Cukierman, 2011. "Reflections on the Crisis and on its Lessons for Regulatory Reforms and for Central Bank Policies," Chapters, in: Sylvester Eijffinger & Donato Masciandaro (ed.), Handbook of Central Banking, Financial Regulation and Supervision, chapter 3, Edward Elgar Publishing.
    5. repec:ces:ifodic:v:8:y:2010:i:3:p:14566927 is not listed on IDEAS
    6. Paul L. Joskow, 2010. "Market Imperfections versus Regulatory Imperfections," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(3), pages 3-7, October.
    7. Currie, Carolyn, 2006. "A new theory of financial regulation: Predicting, measuring and preventing financial crises," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 48-71, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nancy L. Rose, 2014. "Learning from the Past: Insights for the Regulation of Economic Activity," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 1-23, National Bureau of Economic Research, Inc.
    2. Monika Marcinkowska, 2013. "Regulation and self-regulation in banking: in search of optimum," Bank i Kredyt, Narodowy Bank Polski, vol. 44(2), pages 119-158.
    3. Cao, Jing & Ho, Mun S. & Ma, Rong & Zhang, Yu, 2024. "Transition from plan to market: Imperfect regulations in the electricity sector of China," Journal of Comparative Economics, Elsevier, vol. 52(2), pages 509-533.
    4. Stephen Littlechild, 2012. "Merchant and regulated transmission: theory, evidence and policy," Journal of Regulatory Economics, Springer, vol. 42(3), pages 308-335, December.
    5. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," EconStor Preprints 208388, ZBW - Leibniz Information Centre for Economics.
    6. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," FORLand Working Papers 12 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    7. Cave, Martin, 2013. "Extending competition in network industries: Can input markets circumvent the need for an administered access regime?," Utilities Policy, Elsevier, vol. 27(C), pages 82-92.
    8. Vassiliev, M. & Filatov, A., 2011. "The Models of Strategic Interaction between Network and Generating Companies at Electricity Transmission Market," Journal of the New Economic Association, New Economic Association, issue 10, pages 54-73.
    9. Lasantha Meegahapola & Pierluigi Mancarella & Damian Flynn & Rodrigo Moreno, 2021. "Power system stability in the transition to a low carbon grid: A techno‐economic perspective on challenges and opportunities," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(5), September.
    10. Wahyoe Soedarmono & Romora Edward Sitorus, 2014. "The Number Of Financial Regulatory Authorities And Financial Stability: Cross-Country Experiences," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 17(1), pages 129-145, July.
    11. Aymen Ben Rejeb & Adel Boughrara, 2014. "The relationship between financial liberalization and stock market volatility: the mediating role of financial crises," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 17(1), pages 46-70, March.
    12. Allen, Franklin & Carletti, Elena, 2013. "New theories to underpin financial reform," Journal of Financial Stability, Elsevier, vol. 9(2), pages 242-249.
    13. Wang, Li & Menkhoff, Lukas & Schröder, Michael & Xu, Xian, 2019. "Politicians’ promotion incentives and bank risk exposure in China," Journal of Banking & Finance, Elsevier, vol. 99(C), pages 63-94.
    14. John Dooley & Dieter Gramlich & Mikhail V. Oet & Stephen J. Ong & Peter Sarlin, 2015. "Evaluating the Information Value for Measures of Systemic Conditions," Working Papers (Old Series) 1513, Federal Reserve Bank of Cleveland.
    15. Heeks, Richard & Duncombe, Richard, 2003. "Ethical Trade: Issues in the Regulation of Global Supply Chains," Centre on Regulation and Competition (CRC) Working papers 30674, University of Manchester, Institute for Development Policy and Management (IDPM).
    16. Arnone, Marco & Romelli, Davide, 2013. "Dynamic central bank independence indices and inflation rate: A new empirical exploration," Journal of Financial Stability, Elsevier, vol. 9(3), pages 385-398.
    17. Ben Rejeb, Aymen & Boughrara, Adel, 2013. "Financial liberalization and stock markets efficiency: New evidence from emerging economies," Emerging Markets Review, Elsevier, vol. 17(C), pages 186-208.
    18. Abudy, Menachem Meni & Raviv, Alon, 2016. "How much can illiquidity affect corporate debt yield spread?," Journal of Financial Stability, Elsevier, vol. 25(C), pages 58-69.
    19. Del Gaudio, Belinda L. & Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2022. "Misconduct risk in banking services: Does a propensity to be sanctioned exist?," International Review of Financial Analysis, Elsevier, vol. 81(C).
    20. BRATU Renate-Doina, 2014. "The Atributes Of Financial Regulation In The Recovery Period," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 66(5), pages 31-38.

    More about this item

    Keywords

    self-regulation; self-regulatory organization; regulatory agencies; financial crisis; financial services industry; health care industry; advertising industry;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:51328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.