ABSTRACT
Of course regulation is but one of many ways to achieve a particular outcome. Firms and individuals may choose voluntarily to act in particular ways-perhaps for moral/religious reasons or for social standing. Professional groups may recognize a mutual benefit from monitoring its members: the American Medical Association, for example, is involved in defining requirements for practicing medicine, as is the American Bar Association for lawyers. Firms also may adopt their own control mechanisms in hopes of warding off the imposition of regulations. (Though, in some cases, regulations are actually beneficial to a firm, as when they limit entry and competition.) In this chapter’s first subsection we explore these and other alternatives to regulation, as well as supplementary steps that support the goals of regulatory legislation.
