Regulation is an abstract concept of 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:

Social

Regulation in the social, political, and economic domains can take many forms: legal restrictions promulgated by a government authority, contractual obligations (for example, contracts between insurers and their insureds[1]), social regulation (e.g. norms), co-regulation, third-party regulation, certification, accreditation or market regulation.[2]

State-mandated regulation is government intervention in the private market in an attempt to implement policy and produce outcomes which might not otherwise occur,[3] 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 controls on market entries, priceswagesdevelopment approvalspollution effects, employment for certain people in certain industries, standards of production for certain goods, the military forces and services. The economics of imposing or removing regulations relating to markets is analysed in 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.[4]

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.[5]

Reasons

Regulations can be advocated for a variety of reasons, including:[citation needed]Regulations may create costs as well as benefits and may produce unintended reactivity effects, such as defensive practice.[6] Efficient regulations can be defined as those where total benefits exceed total costs.

  • Market failures – regulation due to inefficiency. Intervention due to what economists call market failure.
    • To constrain sellers’ options in markets characterized by monopoly
    • As a means to implement collective action, in order to provide public goods
    • To assure adequate information in the market
    • To mitigate undesirable externalities
  • Collective desires – regulation about collective desires or considered judgments on the part of a significant segment of society[vague]
  • Diverse experiences – regulation with a view of eliminating or enhancing opportunities for the formation of diverse preferences and beliefs[vague]
  • Social subordination – regulation aimed to increase or reduce social subordination of various social groups[citation needed]
  • Endogenous preferences – regulation intended to affect the development of certain preferences on an aggregate level[vague]
  • Professional conduct – the regulation of members of professional bodies, either acting under statutory or contractual powers.[7]
  • Interest group transfers – regulation that results from efforts by self-interest groups to redistribute wealth in their favor, which may be disguised as one or more of the justifications above.

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

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 in regard to contracts.[8]: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 century, 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 allow 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 CommissionSecurities and Exchange CommissionCivil 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 lawcreating 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.

 

https://en.wikipedia.org/wiki/Regulation

Categories:

Tags:

Comments are closed

RISK DISCLOSURE STATEMENT

PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  LOSSES CAN OCCUR JUST AS FREQUENTLY AS OR MORE FREQUENTLY THAN PROFITS.  THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.  THIS BRIEF STATEMENT DOES NOT EXPLAIN ALL THE RISKS INVOLVED IN OPTIONS TRADING, FOR A FULL RISK DISCLOSURE STATEMENT SEE https://alphazadvisors.com/risk-disclosure-statement/

Statistics Blurb
Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Contact us

Contact Alpha Z to learn more about our strategies.

Get Started

Request our Disclosure Document
Risk Disclosure Statement
There is a high risk of loss in trading commodity futures, options, options writing strategies; such trading is not suitable for all investors. Past performance is not indicative of future results. To read the entire Risk Disclosure Statement click here.
RISK DISCLOSURE
Past results are not indicative of future results. The risk of loss in futures trading can be substantial. Carefully consider the risks of an investment in light of your financial condition.

Welcome to Alpha Z Advisors

This website and contents are directed to Qualified Eligible Persons (QEPs) as defined in CFTC Rule §4.7, providing exemption from certain disclosure requirements for commodity pool operators.  Get your free report by filling out your info here:

Please enter your phone number in international format including + Country Code, for example +44 for United Kingdom. If you aren't sure what is your country code, please write your country in the comments section.
=

Enter your email here to get updates from our blog:

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

To learn more about Alpha Z Advisors please call 312-470-6260.