Reasons Regulation

regulations may create costs benefits , may produce unintended reactivity effects, such defensive practice. efficient regulations can defined total benefits exceed total costs.

regulations can advocated variety of reasons, including:

market failures - regulation due inefficiency. intervention due economists call market failure.

to constrain sellers options in markets characterized monopoly
as means implement collective action, in order provide public goods
to assure adequate information in market
to mitigate undesirable externalities


collective desires - regulation collective desires or considered judgments on part of significant segment of society
diverse experiences - regulation view of eliminating or enhancing opportunities formation of diverse preferences , beliefs
social subordination - regulation aimed increase or reduce social subordination of various social groups
endogenous preferences - regulation intended affect development of preferences on aggregate level
professional conduct - regulation of members of professional bodies, either acting under statutory or contractual powers.
interest group transfers - regulation results efforts self-interest groups redistribute wealth in favor, may disguised 1 or more of justifications above.

the study of formal (legal and/or official) , informal (extra-legal and/or unofficial) regulation constitutes 1 of central concerns of sociology of law.