Research & Publications
Extending the Economic Theory of Regulation: The Form of Policy
1991, Public Choice
Eric Bennett Rasmusen, Mark Zupan
The mutually beneficial connection between industries and the governments that regulate them is the subject of a large literature led by Stigler (1971). What has not been studied is how firms choose their desired policies from the set including entry barriers, price floors, subsidies, and demand stimulation. We take as given that government and incumbents form the supply and demand for regulation and explore the choice of political product.
Rasmusen, Eric Bennett and Mark Zupan (1991), "Extending the Economic Theory of Regulation: The Form of Policy," Public Choice, Vol. 72, 167-191.