Regulation and competition policy are two alternative modalities by which the state intervenes in the market. In order for either to deliver welfare gains, there must first be a pre-existing market failure. We first present different varieties of market failures and identify those for which...

This paper recasts current theories of regulatory or legislative competition. Building on the recent contribution of Buchanan and Yoon (2000), we consider alternative ways in which decision-making competence can be allocated among multiple legislative or administrative bodies. The general model...