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Neocapture: regulatory competition in an open market world

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  • Manouchehr Mokhtari
  • Doha Abdelhamid

Abstract

This paper shows that inter-regulatory competition can have powerful pro-consumer effects in an open economy world even when the consumers have little political influence. These findings overturn the welfare implications of capture theories that show that regulators do not vigorously pursue public interests. The paper also points to the kinds of markets where the political competition has more or less powerful effects (fixed cost technology case). Since markets have become more integrated over time, there are obvious implications for the evolution of regulation.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Economic Journal.

Volume (Year): 22 (2008)
Issue (Month): 1 ()
Pages: 1-24

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Handle: RePEc:taf:intecj:v:22:y:2008:i:1:p:1-24

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Related research

Keywords: globalization; regulatory competition; regulatory collusion; capture theory; economic theory of regulation; game theory;

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Cited by:
  1. Mina Baliamoune & Stefan Lutz, 2009. "Preemption, Predation, and Minimum Quality Standards," ICER Working Papers 20-2009, ICER - International Centre for Economic Research.

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