The Positive Theory of Regulation

Günter Knieps
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Günter Knieps: University of Freiburg

Chapter 9 in Network Economics, 2015, pp 157-169 from Springer

Abstract: Abstract The positive theory of regulation studies the emergence, the transformation, and the abolishment, as well as the institutional implementation of sector-specific regulation. Thus the central question is how network industries actually are regulated. In examining this question, the influence exercised by firms, consumer interests, and the bureaucratic self-interest of the regulatory agency must be taken into account in order to explain the behaviour of regulators. The various interest groups of consumers and producers as well as other related interest groups (pursuing e.g. environmental, health, climate, landscape conservation interests) compete with each other in their quest for political influence. The influence exerted by the interest groups involved is fundamentally dependent on the institutional framework.

Keywords: Regulatory Agency; Interest Group; Market Power; Legal Framework; Consumer Surplus (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-3-319-11695-2_9

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