Public Policy and Regulation

Abstract

A few years ago, it was unlikely anyone would write a paper on public policy and regulation. The field was reasonably well-developed, the issues well-defined, and the consequences of policy alternatives agreed-upon. It was generally agreed that the purpose of government regulation of business was to cure competitive imperfections in the marketplace. Most scholars agreed the regulatory agencies were largely captured by the regulated interests, and there was a comfortable and cooperative relationship between the regulator and the regulated. Most of the agencies were organized on an industry-by-industry basis, i.e., Interstate Commerce Commission, Civil Aeronautics Board, and the Federal Communications Commission. The Congressional Acts creating the regulatory agencies were general statements which conferred extremely broad powers to the agencies, and provided little specific policy guidance except to tell the agency to act in the public interest.