Regulation – Legal, Democratic and Political Challenges – Dr Sharon Yadin
Regulation has become a buzzword, particularly in the business and economic context. However, a great deal of confusion exists regarding the nature and characteristics of the phenomenon of regulation. The general public tends to view regulation as enforced state interference, in one of two extremes: over-regulation and de-regulation. Contrary to that, the course aims to develop a complete, rich and considerably more precise conception of the 'real' regulatory domain, as it reflects in both practice and academia, while providing tools for critical analysis of regulation. We will begin by defining basic concepts essential for understanding the regulatory arena, such as regulation, regulators and controlled entities. We will introduce these institutions through multi-disciplinary regulatory literature, which covers areas of law, economics, management, sociology, political science and more. Then, we will review the various justifications for regulatory intervention, both social and economic, as they manifest in the public interest approach to regulation, and apply them on regulators such as the Israeli Securities Authority, the Israeli Antitrust Authority, the Committee for Reduction of Concentration, the Supervisor of Banks, and the Ministries of Economy, Finance, Communications and Environmental Protection. We will further explore Israeli regulatory strategies and tools and look at traditional command and control tools alongside softer tools which rely on market resources, allowing regulatory control without the need to command by law. These may include contractual regulation, self-regulation, regulation by discovery, economic incentives, and more. Finally, we will discuss various regulatory theories, concerned mostly with private interests influencing the regulatory arena, such as regulatory capture theory, revolving door and public choice theory. Next we will apply these theories to the Israeli cultural-social-political arena. The Course is intertwined with current examples of regulatory cases taken from the Israeli commercial and public sphere. We will discuss the regulation of publicly traded corporations, energy discoveries, the food market, the media, monopolies, polluting factories and financial institutions.