This book explores current issues regarding the regulation of various economic sectors, theoretically and empirically, discussing both neoclassical and behavioural economics approaches to regulation. Regulation has become one of the main determinants of modern economies, and virtually every sector is subject to general laws and regulations as well as specific rules and standards. A traditional argument to justify regulatory interventions is the promotion of public interests. Fixing markets that lack competition, balancing information asymmetries, internalising externalities, mitigating systemic risks, and protecting consumers from irrational behaviour are frequently invoked to complement the invisible hand of the market with the visible hand of the state.
However, regulations can lead to unintended consequences, and serve the interests of powerful private interest groups rather than the public interest and social welfare. In addition, new insights from behavioural economics question the traditional regulatory approaches, most prominently in attitudes towards consumers. Furthermore, digitalisation and technological innovation in general present new challenges in terms of both the type of regulation and the regulatory process.
Part I of this book discusses various theoretical approaches to the economic analysis of regulations, while Part II looks at specific applications of the law and economics of regulation.
Klaus Mathis is full professor of Public Law, Law of the Sustainable Economy, and Philosophy of Law at the University of Lucerne. He is the co-founder of the Center for Law and Sustainability (CLS) and Director for the Institute for Research in the Fundaments of Law - lucernaiuris. His particular fields of expertise are Swiss Constitutional Law, Law and Economics, Law of Sustainable Development, and Philosophy of Law.
Avishalom Tor is Professor of Law and Director of the Notre Dame Research Program on Law and Market Behavior (ND LAMB). His particular fields of expertise are Behavioural and Experimental law and Economics, Antitrust Law, and Behavioural Decision Research.
