Regulatory agencies : some theoretical concerns on their creation

Abstract

In order to understand regulation and its several facets, a number of approaches may be envisaged. This paper is to review some of these theoretical approaches that try to explain the creation of regulatory institutions.

Most theories may be roughly encapsulated into two large groups: interest theories and institutional theories. The former is based on the assumption that those seeking to regulate do so in order to satisfy their interest. The latter centre the notion of regulation as being shaped by institutional structures and other processes. It considers that actors are not merely individuals pursuing public or private interests. They instead do act according to organization rule and social environments.

The aim here is to identify the nature of the collective action and the way the political structures, institutions and decision-making process lead to the shaping of the regulatory agency.