ABSTRACT
This chapter addresses equally important dimension of the politics of regulation, namely the creation of regulatory authorities. It discusses the institutional aspects of the US model of regulation and provides more depth in regard to the European Union (EU)-type, sector-specific, independent regulator, as this type of regulator seems to be rapidly becoming the model worldwide. The chapter also discusses the competencies and powers of the sector-specific regulator, as even the best institutional structure and regulatory body remains toothless without power. It examines the institutional dynamics resulting from the creation of EU-style, sector-specific regulators and highlights some of the problems that may result from their creation in the future, such as the costs of regulation and potential political backlash. Regulatory power has many dimensions, such as legal mandate, resources, financing mechanism, selection process, track record, and, most importantly, power based on competence or expertise. A final interesting dimension of regulators’ institutional dynamics pertains to competition regulation.
