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New Institutional Economics Perspective on Industry Self-Regulation
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Self-regulation as a means of mitigating socially undesirable practices in industries such as corruption, environmental degradation, or the violation of human rights is considered a legitimate means of policy. By approaching this phenomenon with the theory of the New Institutional Economics, Jan Sammeck develops an analytical approach that points out the critical mechanisms that decide about the effectiveness of this instrument. By integrating theory with practical examples of self-regulation, this study highlights the necessity to separate that which one deems desirable from that which is feasible, in order to come to a sound judgement about the effectivenes of self-regulation in particular situations.
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