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J Final Admin Law Outline

J Final Admin Law Outline - Administrative Law Outline...

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Administrative Law Outline Spring 2004 Joe Scroppo I. WHY DO WE NEED ADMINISTRATIVE REGULATION? A. Market failure arguments for regulation—defects in a market. B. Compensate for inadequate information - cognitive and motivational. Not everyone has same access to information, or cost of information may be high, or difficulty understanding and applying information. C. Collective Action problems - Individuals actions that have group effect. Individually rational private behavior will produce a collective or public harm. Rationale for each individual's action looks like best course of action for that person, but works out to produce a negative action. For example: national defense. D. Externalities and transaction costs - regulation is desirable to prevent private parties from externalizing their costs, called spillovers. Actual price of product does not reflect the actual social cost of the production and disposal of the product. Those costs are therefore not borne by producer or consumer of the product. Example - pollution; trash disposal of product packaging. E. Need to control "windfall" profits - sudden increase in commodity prices (i.e. electricity in CA during blackouts). We like profits but not a gouging that is not part of normal market operations. Regulation is justified to prevent a producer from getting an unreasonable amount of profit not related to normal market operations, skill, talent, etc. Something is operating to make the profits undeserved. F. Need to eliminate "excessive" competition – A common justification for regulation of telecommunications, trucking, airlines, and shipping firms to control destructive or unfair competition. G. Need to alleviate scarcity - regulation is necessary to allocate an item in short supply. Shortage may be due to some external effect. Ongoing regulation, or use of regulatory allocation, is a way of ensuring allocation we deem in the public interest, rather than allocation left to market forces H. Agency problems - one person paying for another's services. If someone other than buyer is funding the cost of a service/good, then there is disruption of normal market forces and of feedback operating on the buyer to limit uses. Example: medical insurance coverage—where we don't pay the bulk of services. Regulation is appropriate because otherwise there's no limit operating. I. Redistribution: regulation is justified as a means of shifting resources from group A to group B, either directly, or via indirect transfers J. Nonmarket or collective values - regulation is desirable to promote non-market, group, and democratic aspirations. Whether or not a market failure exists, the idea is that social or cultural norms encourage certain regulations - environmental protection, broadcasting.
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K. Disadvantage and caste - regulation is desirable to overcome systematic forms of social disadvantage. Anti-discrimination laws are a major example - race, disability, sex. L.
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J Final Admin Law Outline - Administrative Law Outline...

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