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Regulation

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Economics: Economic Theories of Regulation

Sam Peltzman, University of Chicago
Richard A. Posner, University of Chicago

The purpose and enactment of government regulation is an old, yet particularly timely, subject of academic debate. Understanding how producers or consumers benefit from different types of regulation, or whether the real goal should be socially-, rather than economically-optimized resource use, have been among Posner’s main interests. Peltzman has introduced real-world factors, suggesting that law-making regulators strike a self-interested balance between over-burdening campaign financing producers, and angering the voting public.

Image: Would environmental regulations help producers or consumers? (Image: Flickr/Martini DK)

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