REGULATION AND ADMINISTERED CONTRACTS.

This paper explores the ramifications of introducing administered contracts - long-term, collective contractual relationships - into economic analysis with attention being focused on the implicit regulatory contract. The perspective afforded by the administered contracts framework suggest that the economist's case against regulation has been overstated. Many of the problems associated with regulation lie in what is being regulated, not in the act of regulation (for example, entry restrictions) can be seen to have a plausible efficiency rationale.