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Regulatory competition has been viewed either as a
scourge or as a blessing. Liberal authors warn
against the potential of a race to the bottom when
governments are played out by companies now
operating in a global market place, whereas
conservative authors point to the benefits of
experimentation resulting from a global market in
regulation. This book seeks to transcend that debate
by reframing traditional externality problems as
opportunities for government to shape the market in
new ways that fit better with basic democratic
values. It advances the concept of contextual
regulation by which government creates the
conditions that allow a market for collective goods
to function, even across borders. Contextual
regulation holds that it is possible and even
desirable for government to shape consumer
preferences using market strategies in ways that
regulate companies better than command and control
can. However, the implication is that the underlying
paradigm of regulation needs to shift from a
Machiavellian punishment and reward model to one
that promotes constant innovation to counteract the
traditional limitations of the market.
scourge or as a blessing. Liberal authors warn
against the potential of a race to the bottom when
governments are played out by companies now
operating in a global market place, whereas
conservative authors point to the benefits of
experimentation resulting from a global market in
regulation. This book seeks to transcend that debate
by reframing traditional externality problems as
opportunities for government to shape the market in
new ways that fit better with basic democratic
values. It advances the concept of contextual
regulation by which government creates the
conditions that allow a market for collective goods
to function, even across borders. Contextual
regulation holds that it is possible and even
desirable for government to shape consumer
preferences using market strategies in ways that
regulate companies better than command and control
can. However, the implication is that the underlying
paradigm of regulation needs to shift from a
Machiavellian punishment and reward model to one
that promotes constant innovation to counteract the
traditional limitations of the market.