Rules versus discretion: The productivity consequences of flexible regulation

Authors
Majumdar, SK Marcus, AA
Citation
Sk. Majumdar et Aa. Marcus, Rules versus discretion: The productivity consequences of flexible regulation, ACAD MGMT J, 44(1), 2001, pp. 170-179
Citations number
54
Categorie Soggetti
Management
Journal title
ACADEMY OF MANAGEMENT JOURNAL
ISSN journal
00014273 → ACNP
Volume
44
Issue
1
Year of publication
2001
Pages
170 - 179
Database
ISI
SICI code
0001-4273(200102)44:1<170:RVDTPC>2.0.ZU;2-Q
Abstract
Using data from electric utilities, this study shows that spending on well designed regulations has a positive productivity impact but that spending o n less well-designed regulations has a negative effect. Better-designed reg ulations are flexible and grant firms latitude on how to meet goals, allow them time to deploy new means to meet goals, and set ambitious goals that s tretch them beyond current practices.