Reduction of regulatory risk: a network economic approach

Günter Knieps and Hans-Jörg Weiß

No 117, Discussion Papers from University of Freiburg, Institute for Transport Economics and Regional Policy

Abstract: Several definitions of regulatory risk are known from the literature. From the perspective of regulatory reform it is important to differentiate between the impact of a given regulatory scheme on the firm's risk exposure and the risk arising from discretionary behavior of regulatory agencies. Whereas the conse-quences of effective regulation in principle are known and accepted, excessive regulatory discretion may cause a strong need for regulatory reform. Regulatory reform focussing on the regulatory base risk and the regulatory instrument risk has to solve the problem of the optimal division of labour between regulatory discretion and statutory constraints. Therefore, in this paper the design of a disaggregated regulatory mandate is elaborated; its major elements being the restriction of regulation to monopolistic bottlenecks and a disaggregated appli-cation of sector-specific regulatory instruments.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/32326/1/550550755.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:aluivr:117

Access Statistics for this paper

More papers in Discussion Papers from University of Freiburg, Institute for Transport Economics and Regional Policy Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().