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New Perspectives on Regulation Paperback – July 4, 2009

3.5 out of 5 stars 2 customer reviews

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$12.99 FREE Shipping on orders with at least $25 of books. Temporarily out of stock. Order now and we'll deliver when available. We'll e-mail you with an estimated delivery date as soon as we have more information. Your account will only be charged when we ship the item. Ships from and sold by Amazon.com. Gift-wrap available.

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Product Details

  • Paperback: 168 pages
  • Publisher: The Tobin Project (July 4, 2009)
  • Language: English
  • ISBN-10: 0982478801
  • ISBN-13: 978-0982478806
  • Product Dimensions: 6 x 0.4 x 9 inches
  • Shipping Weight: 9.1 ounces (View shipping rates and policies)
  • Average Customer Review: 3.5 out of 5 stars  See all reviews (2 customer reviews)
  • Amazon Best Sellers Rank: #888,344 in Books (See Top 100 in Books)

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This book starts with a simple premise: After decades of deregulation, the financial crisis and resulting economic collapse have prompted people to re-evaluate their attitude toward government regulation. The question should not be whether we need regulation but what form it should take. To help policymakers craft more effective regulation, the book draws on academics from Harvard, Princeton, MIT, and Duke University, among others, to present guidelines on designing regulation.

The book is divided into seven chapters. The first, "Regulation and Failure," makes a case for regulation by identifying several reasons free markets can fail to produce socially desirable outcomes and using the financial sector to illustrate those reasons. For example, to show that individual incentives often encourage banks to act in undesirable ways, it says that bank executives' compensation structures reward them handsomly for successful ventures but shield them from failures, which encourages them to make risky moves.

"The Case for Behaviorally Informed Regulation" argues that in contrast to classical economic theory, people rarely make objective decisions. The authors identify several reasons people fail to make sound decisions, such as inadequate information and procrastining on difficult choices. They conclude by using 10 examples from the financial sector to illustrate ways that regulation can promote socially desirable behaviors or discourage undesirable ones. For example, to prevent credit card companies from encouraging users to amass crippling debt, they suggest taking advantage of peoples' preference for default options by requiring credit card companies to enroll users in opt-out automic payment plans that will pay off monthly charges quickly.
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Format: Paperback Verified Purchase
The title of this book is enticing. Unfortunately, one must have a thorough knowledge of mathematics, statistics, and other advanced topics in order to grasp the new "perspectives" presented in this book. Perhaps for the graduate level it is appropriate. Certainly too advanced for undergraduate social science students.
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