Private politics are often introduced by market participants in the absence of public regulation. But when is private … politics enough, efficient, or better than administratively costly public regulation? We present a novel framework in which we … can study the interaction between regulation, self-regulation by the firm, and boycotts by the activists in a dynamic game …

to (i) the liquidity regulation of AMs and (ii) the solvency regulation of IIs can improve upon the competitive …