Transaction Costs Theory proposes a microanalytic approach of transactions costs in each mode of organizing industries currently under regulation, either by public or private institutions. Transaction Costs Theory first consideration is the inevitable existence of those costs. In this way, when proposing a microanalytic approach of each mode of economic organization it intends to enlighten which is the best mode of organization for a specific sector and development stage. From this analysis public interest regulation, natural monopoly argument, incentive regulation or regulation through regulation do not get unharmed. The corollary is that the approach to resources that are usually under regulatory intervention should be based on scientific method and debates that include the costs to regulate or not, which are the cognitive and management failures that can come up in each regulation mode and which modes are more efficient.
|Translated title of the contribution||Brief considerations on Transaction Costs Theory contribution to the regulatory debate|
|Journal||Revista de Direito Econômico e Socioambiental|
|Publication status||Published - 2020|