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Global and Domestic Governance: Modes of Interdependence in Regulatory Policymaking
Author(s) -
Lazer David
Publication year - 2006
Publication title -
european law journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 54
eISSN - 1468-0386
pISSN - 1351-5993
DOI - 10.1111/j.1468-0386.2006.00327.x
Subject(s) - interdependence , underpinning , corporate governance , externality , economics , set (abstract data type) , mode (computer interface) , economic system , public economics , microeconomics , political science , computer science , programming language , civil engineering , finance , law , engineering , operating system
Abstract: This article examines how the regulatory policies of countries are interdependent. In particular, it identifies three modes of interdependence: competitive, coordinative, and informational. In the competitive mode the essential structure of interdependence is for countries to attempt to have distinctive policies that provide some advantage over other countries, but where the equilibrium set of policies is suboptimal for all. In the coordinative mode, there is an advantage for all countries to adopt the same policy, but exactly which policy is adopted may have significant distributional consequences. Lastly, in the informational mode, the choices and experiences of countries produce informational externalities, pointing the way for other countries to policy decisions. This article examines the logic underpinning each of these modes of interdependence, and draws out the governance implications of each mode.