Law Commons^™

Regulating The Regulators, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

Since the 1970s, there has been a tremendous growth in government regulation pertaining to risk and the environment. These efforts have emerged quite legitimately because market processes alone cannot fully address risk-related concerns.' Without some kind of regulation or liability, for example, firms lack appropriate incentives to restrict their pollution. Similarly, when products or activities are extremely risky, if people are not cognizant of the risks they face, the firms generating the hazards may not have adequate incentives to issue warnings. To solve these problems, regulatory agencies have mounted a wide variety of efforts to improve the quality of the …