Management-Based Regulation: Prescribing Private Management to Achieve Public Goals
AbstractThis paper was revised and reposted in March 2003. Cary Coglianese and David Lazeranalyze a little-studied regulatory approach that they call "management-based regulation." Management-based regulation directs regulated organizations to engage in a planning process that aims toward the achievement of public goals, offering firms flexibility in how they achieve these goals. This paper develops a framework for assessing conditions for using management-based regulation as opposed to the more traditional technology-based or performance-based regulation. Drawing on case studies of management-based regulation in the areas of food safety, industrial safety, and environmental protection,the authorsshow how management-based regulation can be an effective strategy when regulated entities are heterogeneous and regulatory outputs are relatively difficult to monitor. In addition to analyzing conditions for the use of management-based regulation,the paperassesses the range of choices regulators confront in designing management-based regulations.Coglianese and Lazerconclude that management-based regulation requires a far more complex intertwining of public and private sectors than is typical of other forms of regulation, owing to regulators' need to intervene at multiple stages of the production process as well as to the degree of ambiguity over what constitutes "good management."
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Bibliographic InfoPaper provided by Regulation2point0 in its series Working paper with number 356.
Date of creation: Nov 2002
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- Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
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