Understanding economic principles is key to efficient regulation from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
Efficient regulation necessitates a solid understanding of economic principles. Regulations are crafted with the aim of correcting market failures or ensuring the provision of public goods. However, the success of these regulations depends on a nuanced understanding of how markets operate and how they respond to regulatory interventions. Without a thorough grasp of economic principles, regulators run the risk of implementing ineffective or even counterproductive policies. Economic principles provide regulators with the analytical tools needed to assess the potential impacts of regulations on markets, consumers, and firms. By understanding concepts such as supply and demand, market structure, and incentives, regulators can anticipate how market participants are likely to respond to regulatory changes. This foresight is crucial for designing regulation...
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