Regulatory decisions must be guided by economic analysis from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
Regulatory decisions must be guided by economic analysis. This principle is paramount in the realm of regulation, as it ensures that decisions are made based on sound economic reasoning rather than on arbitrary or non-economic factors. Economic analysis provides a framework for evaluating the costs and benefits of regulatory actions, helping regulators to make informed decisions that maximize the overall welfare of society. When regulators rely on economic analysis, they are better equipped to assess the potential impacts of their decisions on various stakeholders, including consumers, producers, and the economy as a whole. By carefully weighing the costs and benefits of different regulatory options, regulators can identify the most efficient and effective solutions to regulatory problems. Moreover, economic analysis helps regulators to avoid unintended consequences that...
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