Two Dimensions of Regulatory Competition

Abstract

This paper recasts current theories of regulatory or legislative competition. Building on the recent contribution of Buchanan and Yoon (2000), we consider alternative ways in which decision-making competence can be allocated among multiple legislative or administrative bodies. The general model is used to consider the equilibria obtained under different allocations of competence and to formulate some policy considerations.

Keywords: Regulation, Commons, Legislatures, Duopoly

JEL Classification: K0, H1