Private ordering,collective action,and the self-enforcing range of contracts

Contract enforcement is acknowledged as a major issue in Law and in Economics. Contrasting substitution and complementary perspectives with respect to the role of private vs. public enforcement institutions, this article analyses how contract law can support private institutions, and enhance economic efficiency. With multilateral agreements at stake, self-regulation and reputation mechanisms at the core of private ordering have limitations that collective organizations backed by the Law help to overcome. The analysis is substantiated by empirical data from the cattle industry. Our results suggest the need for a broader approach to contract regulation by legal scholars and antitrust-authorities.     

Economic incentives for the self-regulation of the release of price-sensitive information

Companies, as primary disseminators of information, and financial institutions, as major recipients, have economic incentives to self-regulate the transmission and usage of price-sensitive information. These include increased (lost) reputation costs and adverse share price penalties arising from poor management of information disclosure. The economic motivation for self-regulation is seen as conceptually linked to but distinct from legislative changes. Self-regulation has the strong support of economic efficiency arguments, whereas recent additional new legislative changes do not. This article examines a major corporate and institutional response to the new regulatory climate—to internalize part of the regulatory process during their regular relationship communications. Relationships between the case companies and institutions already exist for transaction purposes. They are used as a convenient and low-cost means to pursue self-regulation and to avoid errors of price-sensitive information release. This self-regulatory process is illustrated using case material. It is clear from the response pattern presented that the development of a self-regulatory framework by the parties has been an iterative one. The corporate and institutional systems that have been evolving seem to be significantly influenced by the regulatory trends. The regulatory changes appear to have played a role in increasing market costs incurred by those companies with poor stock market communication practices. The article ends by arguing that new proposals to change in the formal regulatory system should recognize that further legislation is unlikely to improve the poor prosecution record. Nevertheless, legislative changes can combine with and buttress the self-regulation process to create an effective regulatory system.     

Self-Regulation Versus Command and Control? Beyond False Dichotomies

The search for regulatory alternatives to command and control has led many commentators to promote, or at least contemplate, the use of self-regulation to improve the environmental performance of industry. However, much of the current debate has been characterized by a choice between two mutually exclusive policy options: "strict" command and control on one hand, and "pure" self-regulation on the other. In fact, there is a much richer range of policy options, with most falling somewhere between theoretically polar extremes. This article demonstrates that there are a number of "regulatory variables" which policymakers can use to "fine-tune" regulatory options to suit the specific circumstances of particular environmental issues. In the vast majority of circumstances, a combination of self-regulation and command and control will provide the ideal regulatory outcome.     

Profiling the mobile customer – Is industry self-regulation adequate to protect consumer privacy when behavioural advertisers target mobile phones? – Part II

Mobile customers are increasingly being tracked and profiled by behavioural advertisers to enhance delivery of personalized advertising. This type of profiling relies on automated processes that mine databases containing personally-identifying or anonymous consumer data, and it raises a host of significant concerns about privacy and data protection. This second article in a two part series on “Profiling the Mobile Customer” explores how to best protect consumers’ privacy and personal data through available mechanisms that include industry self-regulation, privacy-enhancing technologies and legislative reform.¹ It discusses how well privacy and personal data concerns related to consumer profiling are addressed by two leading industry self-regulatory codes from the UK and the U.S. that aim to establish fair information practices for behavioural advertising by their member companies. It also discusses the current limitations of using technology to protect consumers from privacy abuses related to profiling. Concluding that industry self-regulation and available privacy-enhancing technologies will not be adequate to close important privacy gaps related to consumer profiling without legislative reform, it offers suggestions for EU and U.S. regulators about how to do this.²     

Industry self-regulation,subversion of public institutions,and social control of torts

We characterize the comparative efficiency of industry self-regulation as means of social control of torts. Unlike liability, which is imposed by courts ex post, industry self-regulation, much like government regulation, acts before the harm is done. As compared to government regulators, however, the industry regulates with superior information. Furthermore, a pro-industry bias inherent to self-regulation also arises under alternative institutional arrangements when adjudicators are vulnerable to pressure by industry members. We show when industry self-regulation is socially desirable and feasible, and clarify when it could be an attractive institutional arrangement for developing and transition countries.     

Pharma on the hot seat

The pharmaceutical industry has been receiving greater scrutiny lately due in large part to the many public and private legal enforcement actions taken against pharmaceutical manufacturers. These enforcement actions, along with legal developments such as the OIG Compliance Guidance for Pharmaceutical Manufacturers, the Sarbanes-Oxley Act's statutory guidelines for public corporations, the HIPAA privacy regulations, and the Medicare Modernization Act, have the potential to encourage the pharmaceutical industry to self-regulate beyond the bounds currently required by the law. After a brief overview of enforcement actions and compliance programs directed toward the pharmaceutical industry, this Article reviews a similar situation the hospital industry faced when Medicare promulgated major reimbursement modifications. The Article proposes that the pharmaceutical industry, in the face of such intense scrutiny and uncertainty, should implement more rigorous self-regulation. Without more stringent self-regulation, this intense interest in the pharmaceutical industry may result in a regulatory push that establishes unanticipated and cumbersome measures for the industry.     

Russian Legal Culture: An Analysis of Adaptive Response to an Institutional Transplant

This article is an inquiry into Russian legal culture and is based on the assumption that any institution transplanted from one social environment to another will be reinterpreted and reshaped, so that it can be accepted into the receiving society. The process of adaptation creates an opportunity to examine the receiving society's established practices and way of thinking. To demonstrate their effects, this article explores the author's research findings carried out in two Russian towns where institutions of media self-regulation were set up. The findings are analyzed comparatively in order to identify how the key players in the two towns interpreted the initial ideas, established procedures and rules for the newly set up institutions, and defined the roles that were attributed to them. The results of the two-city case study are then used to interpret some specifics of the internal logic of the local legal culture.     

论司法行政机关与律师自律组织之关系

我国的律师监管体制经历了从单一司法行政管理阶段到行政管理和行业管理相结合的阶段.在不断加强和规范律师协会的行业自律管理的同时,我们必须看到律师协会行业管理的不足.为了克服律师协会自律管理的不足和缺陷,司法行政机关应该把管理重点从直接管理律师转变到管理律师自律组织上来,这样才能够形成行政管理和自治管理良性互动的律师管理模式.     

Solution or Smokescreen? Evaluating Industry Self-Regulation of Televised Food Marketing to Children

It is well established that children's exposure to television advertising for unhealthy food products contributes to the epidemic of childhood obesity. Given this finding, public health officials recommended that the government restrict unhealthy food marketing to children if the industry does not accomplish that goal voluntarily. Food marketers responded by adopting industry self-regulation several years ago, but this study finds that it has produced only marginal improvements in the overall nutritional quality of foods advertised to youth. Unless federal policy-makers intervene, it appears that unhealthy food marketing to children will continue to contribute to childhood obesity in the future.     

Profiling the mobile customer – Privacy concerns when behavioural advertisers target mobile phones – Part I

Mobile customers are being tracked and profiled by behavioural advertisers to be able to send them personalized advertising. This process involves data mining consumer databases containing personally-identifying or anonymous data and it raises a host of important privacy concerns. This article, the first in a two part series on consumer information privacy issues on Profiling the Mobile Customer, addresses the questions: “What is profiling in the context of behavioural advertising?” and “How will consumer profiling impact the privacy of mobile customers?” The article examines the EU and U.S. regulatory frameworks for protecting privacy and personal data in regards to profiling by behavioural advertisers that targets mobile customers. It identifies potential harms to privacy and personal data related to profiling for behavioural advertising. It evaluates the extent to which the existing regulatory frameworks in the EU and the U.S. provide an adequate level of privacy protection and identifies key privacy gaps that the behavioural advertising industry and regulators will need to address to adequately protect mobile consumers from profiling by marketers. The upcoming second article in this series will discuss whether industry self-regulation or privacy-enhancing technologies will be adequate to address these privacy gaps and makes suggestions for principles to guide this process.¹     

中医医疗机构不良执业行为及防范措施调查分析

为了解和掌握东城区中医医疗机构的执业现状,探讨如何规范中医医疗机构的执业行为,为下一步制定中医药发展综合改革政策提供参考,东城区卫生监督所编制了《东城区中医医疗机构依法执业调查表》,对东城区103家中医医疗机构进行了问卷调查。调查结果显示：参与调查的东城区103家中医医疗机构有34家存在使用异地执业医师、设立网站未经审核、医疗废物暂时贮存时间超过2天等不良执业行为。经数据分析,中医医院不良执业行为的发生率比诊所高且具有统计学意义。针对上述问题笔者提出应针对中医医疗机构实施分级管理,加强对中医医疗机构依法执业的培训,卫生监督部门应加大执法力度,建立官方权威中医宣传平台等防范措施,以促进中医医疗机构依法执业及中医行业的健康发展。     

传统中国的多元共治与伦理法制——兼论重塑多元共治

传统中国形成了一元化的行政管理与多元化社会基层组织自我管理有机结合的多元共治机制,这是出于社会环境的必然选择。在多元共治中,国家着眼于指导思想、文化背景、法制保障等方面建设,而具体的、细化的甚至是琐碎的管理事务则由基层社会组织完成。基层社会组织通过民间规约实现自我管理。伦理法制为维护基层组织权威和社会共同价值文化提供法制保障。创新社会管理在某种意义上亦是抹不去的历史回归。     

PRIVATIZING PUNISHMENT: TESTING THEORIES OF PUBLIC SUPPORT FOR PRIVATE PRISON AND IMMIGRATION DETENTION FACILITIES

The transfer of authority over the supervision of inmate populations from state and federal governments to private corporations is one of the most significant contemporary developments in the criminal justice system. Yet, the controversy surrounding the private prison industry has occurred in U.S. criminal justice policy circles without any understanding of the public's preferences toward these institutions. In this article, we test several theories that potentially explain opinions toward privatizing carceral institutions: the racial animus, business is better, conflict of interest, and problem‐escalation models. These models are tested with original data from the 2014 Cooperative Congressional Election Survey. The data show that opinions toward the privatization of carceral institutions do not neatly fall along partisan or ideological divisions but are explained by beliefs about racial resentment, corporate ethics, and the potential ability of private companies to provide services cheaper than the public sphere. The results hold important implications for how we understand the future of private carceral institutions in the United States.     

The Professionalization of Public Accounting: A Social Dilemma Perspective

This study uses a social dilemma model of auditing and a model of cooperative regulatory enforcement to provide a framework within which the evolution of self-regulation in the U.S. accounting profession is studied. From a social dilemma perspective, individual public accounting firms are best off, in a single period sense, by providing a low quality audit product, which is defined in terms of the degree of auditor acquiescence to managers' accounting method discretion. However, firms' collective welfare is maximized by high quality auditing. The cooperative regulatory model employed is premised on the existence of a plausible government threat of punishments and invasive regulations, which motivates self-regulation in an industry. We argue that prior to enactment of the securities acts, public accounting firms faced a social dilemma in which there were limited incentives for high quality auditing either voluntarily or through the establishment of self-regulation. The securities acts provided a plausible threat to which the accounting industry responded by implementing self-regulation in order to avoid invasive and costly government regulation. After the emergence of the accounting profession, there occurred a long period of cooperative regulation with the SEC. Management discretion over accounting methods increased during this time period and audit quality correspondingly decreased, suggesting possible inefficient capture of the SEC. Evidence of an evolution towards a tripartite form of regulation appeared in the 1970s when the SEC and public accounting began to be critically reviewed by Congress. From this time to the present, new regulatory threats have motivated a series of self-regulatory responses by public accounting to improve audit quality.     

How Community Institutions Create Economic Advantage: Jewish Diamond Merchants in New York

This article argues that Jewish merchants have historically dominated the diamond industry because of their ability to reliably implement diamond credit sales. Success in the industry requires enforcing executory agreements that are beyond the reach of public courts, and Jewish diamond merchants enforce such contracts with a reputation mechanism supported by a distinctive set of industry, family, and community institutions. An industry arbitration system publicizes promises that are not kept. Intergenerational legacies induce merchants to deal honestly through their very last transaction, so that their children may inherit valuable livelihoods. And ultra-Orthodox Jews, for whom participation in their communities is paramount, provide important value-added services to the industry without posing the threat of theft and flight.     

Industry-sponsored medical education--in the quest for professional integrity and legal certainty

Industry-sponsored medical education is a much disputed issue. So far, there has been no regulatory framework which provides clear and definite rules as to whether and under what circumstances the sponsorship of medical education is acceptable. State regulation does not exist, or confines itself to a very general principle. Professional regulation, even though applied frequently, is rather vague and indefinite, raising the general question as to whether self-regulation is the right approach at all. Certainly, self-regulation by industry cannot and should not replace other regulatory approaches. Ultimately, advertising law in general and the European Directive 2001/83/EC specifically, might be a good starting point in providing legal certainty and ensuring the independence of medical education. Swiss advertising law illustrates how the principles of the European Directive could be implemented clearly and unambiguously.     

The changing face of protection for individual privacy against the press: Leveson,the Royal Charter and tort liability

This article evaluates two significant methods of protecting private information in the UK – via actions under the tort of misuse of private information, and via press regulation. As the Leveson Report has recently found, parts of the press have systematically abused their power, in terms of acquiring and publishing personal information non-consensually. Thus, as the Report found, it appears that the system of press self-regulation has been shown to be ineffective. The article considers the Leveson proposals for an improved system of press regulation and the current proposal of a Royal Charter. It suggests that, ideally, press regulation could work alongside the tort, tending to encourage press restraint, obviate the need for court action, and providing a remedy for those not willing or able, due to lack of resources, to go to court to seek a remedy for privacy invasion. The history of press self-regulation indicates that those results may not be achieved, but it will be argued that the current response to the Leveson Report in the form of a Royal Charter suggests otherwise.     

Is Enforced Self-regulation a Form of Risk Taking?: The Case of Railway Health and Safety

Enforced self-regulation exemplifies a number of regulatory trends, in particular the co-existence of public and private forms of regulation, state moves to harness other sources of regulation and the growing attempt of the state to penetrate deep into corporate life. This paper explores the limits of enforced self-regulation through discussion of corporate responses to occupational health and safety regulation in Britain. It takes the example of the railway industry where a particularly extreme version of enforced-self regulation eventually led to tragic consequences.     

Regulation and In-Company Environmental Management in the Netherlands*

This paper addresses the relationship between preventive systems of social control and regulation of the behavior of public bodies and private organizations. Illustrated with material on new developments in self-regulation concerning environmental management in companies in the Netherlands, the author argues that a combination of stimulated (or “regulated”) self-regulation and stringent enforcement policies is feasible and should lead to company compliance with environmental regulation. The article discusses the assertion that to reduce the social distance between government and individual citizen, between regulator and regulated, a mixture of policy instruments is needed, ergo: by involving societal groups of interested people in policy formation and self-regulation, enhancing the creation of normative systems (involvement “by association”) on the one hand and the availability of adequate law enforcement procedures on the other, corporations, through responsive government regulation, could promote an adequate and successful preventive system of social control.     

Environment,Self-Regulation,and the Chemical Industry: Assessing Responsible Care*

This study examines the role of self-regulation as a strategy for environment protection. In particular it explores the chemical industry's Responsible Care Program. Responsible Care is afar-reaching and sophisticated self-regulatory scheme intended to reduce chemical accidents and pollution, to build industry credibility through improved performance and increased communication, and to involve the community in decision making. The study identifies the collective action problems and other weaknesses of Responsible Care and argues that a more effective approach to environmental regulation of the chemical industry would be tripartite, involving co-regulation and a range of third party oversight mechanisms.