Interjurisdictional Competition and Regulatory Advantage

As formal trade and investment barriers fall, government regulations– what once were domestic policy matters – becomeissues of international concern. International commerce createsthe potential for competition among regulatory jurisdictions.This article explains why there is variation in these regulatorytrends. Three general ‘trajectories’ are: (a) convergenceamong countries toward less stringent regulations in some cases,(b) convergence toward more stringent regulations in others,while in still other cases (c) differences persist among countries.I offer three (related) propositions which explain the differentregulatory trajectories: #1) Regulations on production processestend toward laxity; whereas product market-access regulationstend toward stringency. #2) Industrial structure affects thestrength of the process/market-access distinction. Powerfulfirms in concentrated markets facilitate collective action andregulatory capture. Dominant producers push for process andmarket-access regulations which reflect their interests, givingthem a competitive regulatory advantage in world markets. #3)The asset specificity of investments affects regulatory convergence.Low asset specificity leads to a competition-in-laxity; highmultinational asset specificity leads to convergence among jurisdictions(as firms seek to lower their transaction costs); and domesticasset specificity leads to differences among jurisdictions.Detailed case studies (on offshore banking, capital requirements,and infant formula) suggest the propositions are necessary tounderstand general outcomes, although not sufficient to fullyexplain individual cases.     

Reviews

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Don't Forget to Vote: Text Message Reminders as a Mobilization Tool

Current explanations of effective voter mobilization strategies maintain that turnout increases only when a potential voter is persuaded to participate through increased social connectedness. The connectedness explanation does not take into account, however, that registered voters, by registering, have already signaled their interest in voting. The theory presented in this article predicts that impersonal, noticeable   messages can succeed in increasing the likelihood that a registered voter will turn out by reminding the recipient that Election Day is approaching. Text messaging is examined as an example of an impersonal, noticeable communication to potential voters. A nationwide field experiment (n = 8,053) in the 2006 election finds that text message reminders produce a statistically significant 3.0 percentage point increase in the likelihood of voting. While increasing social connectedness has been shown to positively affect voter turnout, the results of this study, in combination with empirical evidence from prior studies, suggest that connectedness is not a necessary condition for a successful mobilization campaign. For certain voters, a noticeable reminder is sufficient to drive them to the polls.