Regulatory Networks, Legal Federalism, and Multi-Level Regulatory Systems

in: Marciano, Alain, and Giovanni Ramello (eds.), Law and Economics in Europe and the U.S., Cham: Springer International, 2017, pp. 109-133

23 Pages Posted: 3 May 2016 Last revised: 14 Jun 2017

See all articles by Wolfgang Kerber

Wolfgang Kerber

University of Marburg - School of Business & Economics

Julia Wendel

University of Marburg

Date Written: January 2, 2016

Abstract

Transnational regulatory networks play important roles in multi-level regulatory regimes, as e.g, the European Union. In this paper we analyze the role of regulatory networks from the perspective of the economic theory of legal federalism. Often sophisticated intermediate institutional solutions between pure centralisation and pure decentralisation can help to solve complex trade off problems between the benefits and problems of centralised and decentralised solutions. Drawing upon the insights of the political science literature about regulatory networks, we show that regulatory networks might be an institutional innovation that can fulfill a number of functions (rule-making, best practices and policy learning, effective enforcement, conflict resolution) that might allow for a better intermediate solution between centralised and decentralised regulatory powers. We apply our approach in three case studies to very different regulatory networks, the Body of European Regulators for Electronic Communication (BEREC), the European Competition Network (ECN), and the International Competition Network (ICN). An important result is that regulatory networks might not only be a temporary phenomenon but part of long-term institutional solutions in European multi-level regulatory regimes.

Keywords: Regulatory networks, multi-level regulatory systems, legal federalism, EU regulation

JEL Classification: K2, F55, H11, H77

Suggested Citation

Kerber, Wolfgang and Wendel, Julia, Regulatory Networks, Legal Federalism, and Multi-Level Regulatory Systems (January 2, 2016). in: Marciano, Alain, and Giovanni Ramello (eds.), Law and Economics in Europe and the U.S., Cham: Springer International, 2017, pp. 109-133. Available at SSRN: https://ssrn.com/abstract=2773548 or http://dx.doi.org/10.2139/ssrn.2773548

Wolfgang Kerber (Contact Author)

University of Marburg - School of Business & Economics ( email )

Am Plan 2
Marburg, D-35037
Germany
+49 6421 2823921 (Phone)

Julia Wendel

University of Marburg ( email )

Universitätsstrasse 24
D-35032 Marburg, D-35032
Germany

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