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The Limits of Business Self-Regulation.
- Source :
- California Management Review; Spring85, Vol. 27 Issue 3, p132-147, 16p
- Publication Year :
- 1985
-
Abstract
- While business self-regulation is often invoked as an alternative to government regulation, it has never lived up to its promise. This article contends that the "undersupply" of business self-regulation is due to the fact that its benefits typically take the form of public goods. It is notorious that public goods, because they are vulnerable to free-rider problems, are inefficiently supplied by the market. Ironically, then the principal means that we rely on to regulate business–the market–undercuts business's capacity for self-regulation in cases of market failure. Moreover, the extreme fragmentation of business in the U.S. and the barriers we have placed in the way of inter-firm collective action have left us heavily dependent on government to regulate market failures. In other societies, collective action by business, typically administered by a peak organization, has provided an alternative to increased government control. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00081256
- Volume :
- 27
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- California Management Review
- Publication Type :
- Academic Journal
- Accession number :
- 4762174
- Full Text :
- https://doi.org/10.2307/41165147