Enforcement mechanisms are vital for regulatory success from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
In the realm of regulation, the effectiveness of enforcement mechanisms cannot be overstated. Without robust mechanisms in place to ensure compliance with regulatory measures, the very purpose of regulation is compromised. Enforcement mechanisms serve as the backbone of regulatory success, providing the necessary means to uphold the rules and standards set forth by regulatory agencies. One key reason why enforcement mechanisms are crucial for regulatory success is their role in deterring non-compliance. The threat of penalties and sanctions acts as a powerful incentive for regulated entities to adhere to regulatory requirements. By imposing consequences for violations, enforcement mechanisms create a strong deterrent effect, prompting compliance and fostering a culture of regulatory adherence. Moreover, enforcement mechanisms play a vital role in ensuring accountability within the regulatory framework. By holding violators accountable for their actions, enforcement mechanisms help maintain the credibility and integrity of the regulatory system. When offenders are held ...
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