Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10474951 | Journal of Economics and Business | 2005 | 9 Pages |
Abstract
There are many activities which, whilst not regulated now, may be subject to regulation in the future. Firms with high potential compliance costs can use voluntary self-regulatory behavior now to signal their type, and so secure lenient treatment should regulation arise in the future. The performance of self-regulators may deteriorate when regulation is imposed. The prediction that high cost firms will self-regulate has novel implications. More generally, it can be thought of as a model of voluntary private provision of a public good in a world in which private provision may later become mandatory.
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Authors
Anthony G. Heyes,