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Contribution to Collected Edition

Regulatory Competition


Hornuf,  Lars
MPI for Innovation and Competition, Max Planck Society;

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Gödker, K., & Hornuf, L. (2019). Regulatory Competition. In A. Marciano, & G. Battista Ramello (Eds.), Encyclopedia of Law and Economics, Volume 3 (O-Z) (pp. 1787-1795). New York: Springer.

Cite as: https://hdl.handle.net/11858/00-001M-0000-002C-E736-9
Regulatory competition describes the activity of private or public lawmakers who intend to produce novel or alter current legislation in response to competitive pressure from other private or public lawmakers. In this chapter, we provide an overview of the legal arbitrage tactics of various entities, which are a necessary, though not sufficient, condition for regulatory competition. Moreover, we investigate whether and how lawmakers respond to these endeavors by adapting their national corporate, insolvency, capital markets, and environmental law as well as product standards.