Regulatory Theory

Regulatory Theory is a framework used to understand how rules and standards are established and enforced within industries or organizations. It emphasizes the importance of creating balanced regulations that ensure safety, fairness, and efficiency without unnecessarily stifling innovation or growth. The theory explores how regulations can influence behavior, market dynamics, and competition, aiming to promote public interest while allowing flexibility for adaptation. Essentially, it provides insights into designing policies that regulate activities effectively, maintaining order and accountability while fostering a healthy, competitive environment.