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What is the definition of regulation?

In extreme cases, regulation takes the form of prohibition of an entire activity such as insider trading, money laundering and short selling. Distinction may be made between private (or self-) regulation and public (government) regulation.

What is regulation in economics?

Regulation in this sense approaches the ideal of an accepted standard of ethics for a given activity to promote the best interests of those participating as well as the continuation of the activity itself within specified limits. In America, throughout the 18th and 19th centuries, the government engaged in substantial regulation of the economy.

What should a regulator consider in developing regulations?

In developing regulations, the regulator should consider costs and benefits. In the analysis, the net regulatory burden (private costs less private benefits of regulation) may also be relevant. Potential costs and benefits, regardless of the perspective, may be difficult to assess.

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