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{{Short description|General term for rules, including delegated legislation and self-regulation}}{{Other uses}}{{Distinguish|Relegation}}Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For example:

• in government, typically regulation (or its plural) refers to the delegated legislation which is adopted to enforce primary legislation;
• in economy: regulatory economics
• in finance: Financial regulation
• in business, industry self-regulation occurs through self-regulatory organizations and trade associations which allow industries to set and enforce rules with less government involvement; and,
• in biology, gene regulation and metabolic regulation allow living organisms to adapt to their environment and maintain homeostasis;
• in psychology, self-regulation theory is the study of how individuals regulate their thoughts and behaviors to reach goals.

Social

Regulation in the social, political, psychological, and economic domains can take many forms: legal restrictions promulgated by a government authority, contractual obligations (for example, contracts between insurers and their insuredsMarcos Antonio Mendoza, "Reinsurance as Governance: Governmental Risk Management Pools as a Case Study in the Governance Role Played by Reinsurance Institutions", 21 Conn. Ins. L.J. 53, (2014)weblink self-regulation in psychology, social regulation (e.g. norms), co-regulation, third-party regulation, certification, accreditation or market regulation.Levi-Faur, David, Regulation and Regulatory Governance, Jerusalem Papers in Regulation and Governance, No. 1, 2010State-mandated regulation is government intervention in the private market in an attempt to implement policy and produce outcomes which might not otherwise occur,Orbach, Barak, What Is Regulation? 30 Yale Journal on Regulation Online 1 (2012) ranging from consumer protection to faster growth or technological advancement.The regulations may prescribe or proscribe conduct ("command-and-control" regulation), calibrate incentives ("incentive" regulation), or change preferences ("preferences shaping" regulation). Common examples of regulation include limits on environmental pollution, laws against child labor or other employment regulations, minimum wages laws, regulations requiring truthful labelling of the ingredients in food and drugs, and food and drug safety regulations establishing minimum standards of testing and quality for what can be sold, and zoning and development approvals regulation. Much less common are controls on market entry, or price regulation.One critical question in regulation is whether the regulator or government has sufficient information to make ex-ante regulation more efficient than ex-post liability for harm and whether industry self-regulation might be preferable.JOURNAL, Sim, Michael, 2018, Limited Liability and the Known Unknown,weblink Duke Law Journal, 68, 275–332, 10.2139/ssrn.3121519, 44186028, 1556-5068, SSRN, JOURNAL, Schwarcz, Steven L., 2011, Keynote & Chapman Dialogue Address: Ex Ante Versus Ex Post Approaches to Financial Regulation,weblink SSRN Electronic Journal, 10.2139/ssrn.1748007, 154354509, 1556-5068, {{Citation|last=Hosoe|first=Moriki|title=Ex-ante Regulation, Ex-post Regulation, and Collusion|date=2020|url=http://dx.doi.org/10.1007/978-981-15-3300-6_4|work=Applied Economic Analysis of Information and Risk|pages=49–66|place=Singapore|publisher=Springer Singapore|doi=10.1007/978-981-15-3300-6_4|isbn=978-981-15-3299-3|s2cid=216306756|access-date=2020-11-03}}WEB, Shavell, Steven, October 1983, Liability for Harm Versus Regulation of Safety,weblink Cambridge, MA, 10.3386/w1218, The economics of imposing or removing regulations relating to markets is analysed in empirical legal studies, law and economics, political science, environmental science, health economics, and regulatory economics.Power to regulate should include the power to enforce regulatory decisions. Monitoring is an important tool used by national regulatory authorities in carrying out the regulated activities.Eraldo Banovac. Monitoringgrundlagen der kroatischen Regulierungsbehörde für Energie. EW − das Magazin für die Energie Wirtschaft, Vol. 103, No. 1–2, 2004, pp. 14–16.In some countries (in particular the Scandinavian countries) industrial relations are to a very high degree regulated by the labour market parties themselves (self-regulation) in contrast to state regulation of minimum wages etc.Anders Kjellberg (2017) "Self-regulation versus State Regulation in Swedish Industrial Relations" In Mia Rönnmar and Jenny Julén Votinius (eds.) Festskrift till Ann Numhauser-Henning. Lund: Juristförlaget i Lund 2017, pp. 357-383

History

Regulation of businesses existed in the ancient early Egyptian, Indian, Greek, and Roman civilizations. Standardized weights and measures existed to an extent in the ancient world, and gold may have operated to some degree as an international currency. In China, a national currency system existed and paper currency was invented. Sophisticated law existed in Ancient Rome. In the European Early Middle Ages, law and standardization declined with the Roman Empire, but regulation existed in the form of norms, customs, and privileges; this regulation was aided by the unified Christian identity and a sense of honor regarding contracts.John Braithwaite, Péter Drahos. (2000). Global Business Regulation. Cambridge University Press.{{rp|5}}Modern industrial regulation can be traced to the Railway Regulation Act 1844 in the United Kingdom, and succeeding Acts. Beginning in the late 19th and 20th centuries, much of regulation in the United States was administered and enforced by regulatory agencies which produced their own administrative law and procedures under the authority of statutes. Legislators created these agencies to require experts in the industry to focus their attention on the issue. At the federal level, one of the earliest institutions was the Interstate Commerce Commission which had its roots in earlier state-based regulatory commissions and agencies. Later agencies include the Federal Trade Commission, Securities and Exchange Commission, Civil Aeronautics Board, and various other institutions. These institutions vary from industry to industry and at the federal and state level. Individual agencies do not necessarily have clear life-cycles or patterns of behavior, and they are influenced heavily by their leadership and staff as well as the organic law creating the agency. In the 1930s, lawmakers believed that unregulated business often led to injustice and inefficiency; in the 1960s and 1970s, concern shifted to regulatory capture, which led to extremely detailed laws creating the United States Environmental Protection Agency and Occupational Safety and Health Administration.

Measurement

Regulation can be assessed for different countries through various quantitative measures. The Global Indicators of Regulatory GovernanceGlobal Indicators of Regulatory Governance by World Bank's Global Indicators Group scores 186 countries on transparency around proposed regulations, consultation on their content, the use of regulatory impact assessmentsOrganisation for Economic Co-operation and Development (2008), Introductory Handbook for Undertaking Regulatory Impact Analysis (RIA),weblink , retrieved 4/11/23. and the access to enacted laws on a scale from 0 to 5. The V-Dem Democracy indices include the regulatory quality indicator.Sigman, Rachel, and Staffan I. Lindberg. "Neopatrimonialism and democracy: An empirical investigation of Africa's political regimes." V-Dem Working Paper 56 (2017). The QuantGov projectWEB,weblink QuantGov, quantgov.org, June 4, 2023, at the Mercatus Center tracks the count of regulations by topic for United States, Canada, and Australia.

See also

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• {{annotated link|Consumer protection}}
• {{annotated link|Rulemaking}}
• {{annotated link|Regulatory state}}
• {{annotated link|Deregulation}}
• {{annotated link|Environmental law}}
• {{annotated link|Occupational safety and health}}
• {{annotated link|Public administration}}
• {{annotated link|Regulation of science}}
• {{annotated link|Regulatory capture}}
• {{annotated link|Regulatory economics}}
• {{annotated link|Tragedy of the commons}}
• {{annotated link|Public choice}}
• {{annotated link|Precautionary principle}}

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References

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External links

{{Wiktionary}}

• Centre on Regulation in Europe (CERRE)
• New Perspectives on Regulation (2009) and Government and Markets: Toward a New Theory of Regulation (2009)
• US/Canadian Regulatory Cooperation: {{Webarchive|url=https://web.archive.org/web/20110430214811weblink |date=2011-04-30 }} Schmitz on Lessons from the European Union, Canadian Privy Council Office Commissioned Study
• A Comparative Bibliography: Regulatory Competition on Corporate Law

Wikibooks

• b:Legal and Regulatory Issues in the Information Economy|Legal and Regulatory Issues in the Information Economy]]
• Lawrence A. Cunningham, A Prescription to Retire the Rhetoric of 'Principles-Based Systems' in Corporate Law, Securities Regulation and Accounting (2007)

{{Law}}{{Public policy}}{{Aspects of capitalism}}{{Authority control}}