The Choice of Regulatory Regimes: a Unified Framework

Peihong Yang

（Unirule Institute of Economics）

Abstract:

This paper tries to understand the choice rule of different regulatory regimes which include norms, legal systems and regulations. We adopted an approach different from legal origin theory and discarded the belief that one legal system was better than others or vise versa. The costs associated with different regulatory regimes are disintegrated into variable and fixed parts which are generated from the properties of these regulatory regimes. By varying these costs, the choice rule is given and the convergence of these regulatory regimes are also illustrated.