By Edwin A Notley
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The second, and most important, is the ‘decrease in available wealth’ to be redistributed (Peltzman, 1989: 109). The idea is that since regulation presumably creates ineﬃciencies, as these increase, the scope for redistribution decreases, eventually to the point where everyone is made better oﬀ by a deregulation that increases eﬃciency and wealth. Wilson (1980) has put forward the outline of a political theory of regulation, in opposition to the economic theories that were dominating until the early 1980s.
This criticism is to the point, although, to be fair, Majone does not argue that regulation has no redistributive eﬀects, but only that these are less important in regulation than in other policies, and that redistribution is not the primary goal of regulation. A related criticism is that Majone’s arguments indicate a normative bias in favor of technocratic decision-making, which leads to downplaying the political nature of all regulatory policies. Furthermore, scholars have found no evidence of convergence towards a single regulatory state model (Eberlein, 1999, 2000; Coen, 2005).
Second, the strategic Delegation to independent regulatory agencies 31 anticipation of other actors may be a necessary condition for timeinconsistent preferences. Third, time inconsistency may arise simply because of the shape of the discount function of the actor. In either situation, timeinconsistent preferences result and lead to the incapacity to credibly commit to a given course of action. The consequence is that rational actors will try to design commitment devices that will force them to stick to the original decision even when preferences change.
A Comparative Grammar of the French, Italian, Spanish and Portuguese Languages by Edwin A Notley