Regulatory Contracts and Stakeholder Regulation
AbstractThis paper examines the application of the concept of a regulatory contract in the analysis of UK utilities regulation. It argues that there are serious problems in conceiving of regulatory relations as analogous to contracts, though particular contracts may be a useful tool in the regulatory armoury. This is partly due to problems with principal/agent theory, which has been conceived in different ways by economists and lawyers, and partly due to the essentially political nature of regulatory relations, which make it difficult to tie down regulatory discretion in ways which resemble contractual relations. There is also ambiguity as to who is principal and who is agent, with the danger of adopting a single theoretical category for relationships which are radically different. The early legal structures adopted for UK utility regulation did have elements of a regulatory contract, but with the growth of competition and social regulation, a different model, that of a network of stakeholders, has largely replaced it. This offers the opportunity to develop more sophisticated regulatory procedures, but does not replace the need for substantive values drawn from economics but also from public service values as guides for regulatory decisions. Copyright CIRIEC, 2005.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Annals of Public & Cooperative Economics.
Volume (Year): 76 (2005)
Issue (Month): 1 (03)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jean-Michel Glachant, 2012.
"Regulating Networks in the New Economy,"
Review of Economics and Institutions,
Università di Perugia, Dipartimento Economia, Finanza e Statistica, vol. 3(1).
- Jean-Michel Glachant, 2009. "Regulating Networks in the New Economy," RSCAS Working Papers 2009/05, European University Institute.
- Jean-Michel Glachant, 2009. "Regulating Networks in the New Economy," EUI-RSCAS Working Papers 5, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Franceys, Richard W.A. & Gerlach, Esther, 2011. "Consumer involvement in water services regulation," Utilities Policy, Elsevier, vol. 19(2), pages 61-70, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.