Regulatory capitalism

Regulatory capitalism

A recently formed branch of study in Industrial Sociology, Regulatory Capitalism endeavors to understand the methods corporate entities use to alter the legal system. As one observer put it,

Regulatory capitalism is when companies invest in lawyers, lobbyists and politicians, instead of plant, people and customer service.1

Neo-classical economics is widely espoused by financial analysts and business leaders as a doctrine that gives rise to decreasing amounts of regulation in commercial activities, and often business lobbying efforts will seek to replace regulation with market driven forces. Sometimes, however, contemporary situations (endogenous technological change, for instance) give rise to problems that can't be easily reconciled under the neo-classical framework. Regulation adds significant complication to these events, and often businesses will have incentive to exploit outdated or ill-conceived legislation, as well as lobby for its preservation 2. In many cases, industry groups successfully lobby for the creation of new laws that protect their interests 3

References

1. Internet Telephony: America Is Waiting, Remarks By FCC Chairman William E. Kennard Before The Voice Over Net Conference, September 12, 2000, Atlanta, Georgia.
2. The Billionaire Appartchik, J. Peter Freire, Reason Magazine, July 6, 2006 [http://www.reason.com/news/show/36717.html link ]
3. Organizational Effectiveness and the Institutional Environment, Paul M. Hirsch, Administrative Science Quarterly, Vol. 20, No. 3 (Sep., 1975), pp. 327-344.

Bibliography

- The Rise of Regulatory Capitalism: The Global Diffusion of a New Order, The ANNALS of the American Academy of Political and Social Science Series. David Levi-Faur and Jacint Jordana Eds.


Wikimedia Foundation. 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Capitalism — Liberal market economy redirects here. For the ideology behind this economic system, see Economic liberalism. Free enterprise redirects here. For the 1999 film, see Free Enterprise (film). For other uses, see Capitalism (disambiguation). Part of… …   Wikipedia

  • Regulatory capture — In economics, regulatory capture occurs when a state regulatory agency created to act in the public interest instead advances the commercial or special interests that dominate the industry or sector it is charged with regulating. Regulatory… …   Wikipedia

  • Criticism of capitalism — This article lists arguments against capitalism, For a summary of ideologies opposed to capitalism, see Anti capitalism. Part of a series on Capitalism …   Wikipedia

  • Anarcho-capitalism — Part of the Politics series on Anarchism …   Wikipedia

  • Democratic capitalism — Democratic capitalism, also known as capitalist democracy, is a political, economic, and social system and ideology based on a tripartite arrangement of a market based economy based predominantly on a democratic polity, economic incentives… …   Wikipedia

  • Crony capitalism — is a term describing a capitalist economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants,… …   Wikipedia

  • Eco-capitalism — is one of several strategies of the green movement and Green Parties. Its central idea is that capital exists in nature as natural capital (self renewing productive ecosystems that have a measurable ecological yield or tangible benefit to humans) …   Wikipedia

  • Corporate capitalism — is a term used in social science and economics to describe a capitalist marketplace characterized by the dominance of hierarchical, bureaucratic corporations, which are legally required to pursue profit. A large proportion of the economy and… …   Wikipedia

  • Center for the Advancement of Capitalism — The Center for the Advancement of Capitalism (formerly the Center for the Moral Defense of Capitalism) is a public policy group organized in 1998 with the mission of presenting analyses to policymakers, the judiciary, and the public to assist in… …   Wikipedia

  • Deregulation — Part of a series on Capitalism Concepts …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”