Skip to main content Accessibility help
×
Hostname: page-component-5d59c44645-lfgmx Total loading time: 0 Render date: 2024-02-26T12:08:55.740Z Has data issue: false hasContentIssue false

16 - Markets in the Shadow of the State: An Appraisal of Deregulation and Implications for Future Research

Published online by Cambridge University Press:  20 January 2010

Edward J. Balleisen
Affiliation:
Duke University, North Carolina
David A. Moss
Affiliation:
Harvard University, Massachusetts
Get access

Summary

From the late nineteenth century through the post-World War II era, the case for “economic” regulation – that is, policies that govern entry and exit, competitive practices, the size of economic units, or the prices that firms could charge – rested on a combination of two claims. First, concentrations of economic power enabled large corporations to impose monopoly prices on consumers, citizens, and potential competitors. As a result, governments had to fashion some means to hold corporations accountable and preserve competitive markets or, if this proved impossible for technical reasons, to guarantee results that would be sufficiently market-like. A second claim, most salient during the Great Depression, was that “ruinous” market competition could be the source of great instability. Left to their own devices, corporations would engage in price wars, creating destabilizing price fluctuations and bankruptcies. Regulations could inject stability by managing the conditions of competition. Regardless of the claim in question – claims that were, in practice, difficult to reconcile – policymakers asserted that regulations provided the only means of forcing higher levels of political accountability and thereby promoting the public interest.

Quite naturally, regulation became an issue of abiding interest to political scientists from the first legislative adoption of regulatory strategies to constrain the economic power of businesses. Research ranged across a host of issues including bureaucratic politics, the power of organizational life cycles, the challenges of exercising political control over regulatory bureaucracies, the relative power of competing principals, the representation of interests in the regulatory process, the dynamics of regulatory capture, the vagaries of regulatory federalism, and the quality of regulatory policies more generally.

Type
Chapter
Information
Government and Markets
Toward a New Theory of Regulation
, pp. 512 - 537
Publisher: Cambridge University Press
Print publication year: 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Derthick, Martha and Quirk, Paul J., The Politics of Deregulation (Washington, D.C.: Brookings Institution, 1985)Google Scholar
,U.S. Government Accountability Office, Airline Deregulation: Reregulating the Airline Industry Would Likely Reverse Consumer Benefits and Not Save Airline Pensions. (Washington, D.C.: Government Accountability Office, 2006)Google Scholar
Peoples, James, “Deregulation and the Labor Market.” The Journal of Economic Perspectives 12, 3 (1998): 116Google Scholar
Hirsch, Barry T. and Macpherson, David A., “Earnings, Rents, and Competition in the Airline Labor Market.” Journal of Labor Economics 18, 1 (January 2000): 125–55CrossRefGoogle Scholar
Ying, John S. and Keeler, Theodore E., “Pricing in a Deregulated Environment: The Motor Carrier Experience.” The RAND Journal of Economics 22, 2. (Summer, 1991): 264–73CrossRefGoogle Scholar
Winston, Clifford, “U.S. Industry Adjustment to Economic Deregulation.” The Journal of Economic Perspectives 12, 3. (Summer 1998): 89–110CrossRefGoogle Scholar
Ying, John S., “The Inefficiency of Regulating a Competitive Industry: Productivity Gains in Trucking Following Reform.” The Review of Economics and Statistics 72, 2 (May 1990): 191–201CrossRefGoogle Scholar
,U.S. Government Accountability Office, Freight Railroads: Updated Information on Rates and Competition Issues. (Washington, D.C.: Government Accountability Office, 2007). GAO-07–1245TGoogle Scholar
Davis, David E. and Wilson, Wesley W., “Wages in Rail Markets: Deregulation, Mergers, and Changing Networks Characteristics.” Southern Economic Journal 69, 4 (2003): 867CrossRefGoogle Scholar
Becker, Gary, The Economics of Discrimination. (Chicago: University of Chicago Press, 1957)Google Scholar
Peoples, James and Saunders, Lisa, “Trucking Deregulation and the Black/White Wage Gap.” Industrial and Labor Relations Review 47, 1 (October 1993): 23–35CrossRefGoogle Scholar
Agesa, Jacqueline and Brown, Anita, “Regulation, Unionization, and Racial Wage Discrimination: An Analysis of the Trucking Industry.” American Journal of Economics and Sociology 57, 3 (July 1998): 285–305CrossRefGoogle Scholar
Black, Sandra E. and Strahan, Philip E., “The Division of Spoils: Rent-Sharing and Discrimination in a Regulated Industry.” The American Economic Review 91, 4 (September 2001): 814–31CrossRefGoogle Scholar
Agesa, Jacqueline, “Deregulation and the Racial Composition of Airlines.” Journal of Policy Analysis and Management 20, 2 (Spring 2001): 223–37CrossRefGoogle Scholar
Hendricks, Wallace, “Deregulation and Labor Earnings.” Journal of Labor Research 15 (1994): 209–34CrossRefGoogle Scholar
Belman, Dale L. and Monaco, Kristen A., “The Effects of Deregulation, De-Unionization, Technology, and Human Capital on the Work and Work Lives of Truck Drivers.” Industrial and Labor Relations Review 54, 2A (March 2001): 502–24CrossRefGoogle Scholar
MacDonald, James M. and Cavalluzzo, Linda C., “Railroad Deregulation: Pricing Reforms, Shipper Responses, and the Effects on Labor.” Industrial and Labor Relation Review 50, 1 (1996): 80–91CrossRefGoogle Scholar
Davis, David E. and Wilson, Wesley W., “Deregulation, Mergers, and Employment in the Railroad Industry.” Journal of Regulatory Economics 15 (1999): 5–22CrossRefGoogle Scholar
Davis, David E. and Wilson, Wesley W., “Wages in Rail Markets: Deregulation, Mergers, and Changing Networks Characteristics.” Southern Economic Journal 69, 4 (2003): 866CrossRefGoogle Scholar
Eisner, Marc Allen, Worsham, Jeff, and Ringquist, Evan J., Contemporary Regulatory Policy, 2nd ed. (Boulder, Colo.: Lynne Rienner, 2006)Google Scholar
Lindblom, Charles E., “The Market as Prison.” Journal of Politics 44, 2 (May 1982): 332, 333CrossRefGoogle Scholar
Edelman, Lauren B. and Suchman, Mark C., “The Legal Environments of Organizations.” Annual Review of Sociology 23 (1997): 479–515CrossRefGoogle Scholar
Swedberg, Richard, “The Case for an Economic Sociology of Law.” Theory and Society 32, 1 (February 2003): 4CrossRefGoogle Scholar
Eisner, Marc Allen, Governing the Environment: The Transformation of Environmental Regulation. (Boulder, Colo.: Lynne Rienner, 2007)Google Scholar
Campbell, John L., Hollingsworth, J. Rogers, and Lindberg, Leon N., eds., Governance of the American Economy. (Cambridge: Cambridge University Press, 1991)CrossRef
Hollingsworth, J. Rogers, Schmitter, Phillipe C., and Streeck, Wolfgang, Governing Capitalist Economies: Performance and Control of Economic Sectors. (New York: Oxford University Press, 1994)
Hollingsworth, J. Rogers and Boyer, Robert, Contemporary Capitalism: The Embeddedness of Institutions. (Cambridge: Cambridge University Press, 1997)CrossRefGoogle Scholar
Fligstein, Neil, The Architecture of Markets: An Economic Sociology of Twenty-First Century Capitalist Societies. (Princeton, N.J.: Princeton University Press, 2001)Google Scholar
Williamson, Oliver E., “The Economics of Organization: The Transaction Cost Approach.” The American Journal of Sociology 87, 3 (1981): 558CrossRefGoogle Scholar
Williamson, Oliver E., The Economic Institutions of Capitalism. (New York: Free Press, 1985)Google Scholar
Krippner, Greta R., “The Elusive Market: Embeddedness and the Paradigm of Economic Sociology.” Theory and Society 30, 6 (December 2001): 786CrossRefGoogle Scholar
D'Aunno, Thomas, Succi, Melissa, and Alexander, Jeffrey A., “The Role of Institutional and Market Forces in Divergent Organizational Change.” Administrative Science Quarterly 45, 4. (December 2000): 679–703CrossRefGoogle Scholar
Campbell, John L. and Lindberg, Leon N., “Property Rights and the Organization of Economic Activity by the State.” American Sociological Review 55, 5 (October 1990): 634–47CrossRefGoogle Scholar
Fligstein, Neil, “Markets as Politics: A Political-Cultural Approach to Market Institutions.” American Sociological Review 61, 4 (August 1996): 664–65CrossRefGoogle Scholar
Morrison, Steven A. and Winston, Clifford, “The Remaining Role for Government Policy in the Deregulated Airline Industry,” in Peltzman, Sam and Winston, Clifford, eds., Deregulation of Network Industries: What's Next? (Washington, D.C.: AEI-Brookings Joint Center for Regulatory Studies, 2000): 4, 22Google Scholar
Poole, Robert W., and Butler, Viggo, “Airline Deregulation: The Unfinished Revolution.” Regulation 22, 1 (1999): 44–51Google Scholar
Bailey, Elizabeth E., “Aviation Policy: Past and Present.” Southern Economic Journal 69, 1 (July 2002):17CrossRefGoogle Scholar
,National Research Council, Entry and Competition in the U.S. Airline Industry: Issues and Opportunities. (Washington, D.C.: National Academy Press, 1999)Google Scholar
Ito, Harumito and Lee, Darin, “Domestic Code Sharing, Alliances, and Airfares in the U.S. Airline Industry.” Journal of Law and Economics 50, 2 (May 2007): 355–80CrossRefGoogle Scholar
Briggs, Jr. Vernon M., “The Mutual Aid Pact of the Airline Industry.” Industrial and Labor Relations Review 19 (1965): 3–20CrossRefGoogle Scholar
Ben-Yosef, Eldad, The Evolution of the US Airline Industry: Theory, Strategy and Policy. (Dordrecht: Springer, 2005), 132CrossRefGoogle Scholar
Grimm, Curtis and Winston, Clifford, “Competition in the Deregulated Railroad Industry: Sources, Effects, and Policy Issues.” In Deregulation of Network Industries: What's Next?, ed., Peltzman, Sam and Winston, Clifford (Washington, D.C.: AEI-Brookings Joint Center for Regulatory Studies, 2000)Google Scholar
Crandall, Robert W. and Hausman, Jerry A., “Competition in U.S. Telecommunications Services: Effects of the 1996 Legislation.” In Deregulation of Network Industries: What's Next, ed., Peltzman, Sam and Winston, Clifford (Washington, D.C.: AEI-Brookings Joint Center for Regulatory Studies, 2000)Google Scholar
Coglianese, Cary and Nash, Jennifer, eds., Regulating from the Inside: Can Environmental Management Systems Achieve Policy Goals? (Washington, D.C.: Resources for the Future, 2001)
Gunningham, Neil, Kagan, Robert A., and Thornton, Dorothy, Shades of Green: Business, Regulation, and Environment (Stanford: Stanford University Press, 2003)Google Scholar
Prakash, Aseem and Potoski, Matthew, The Voluntary Environmentalists: Green Clubs, ISO 14001, and Voluntary Environmental Regulations (Cambridge: Cambridge University Press, 2006)CrossRefGoogle Scholar
Eisner, Marc Allen, “Corporate Environmentalism, Regulatory Reform, and Self-Regulation: Toward Genuine Regulatory Reinvention in the United States.” Governance 17, 2 (April 2004): 145–6CrossRefGoogle Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×