metroid composite posted...
Private regulations? I...uhh...can you give me an example? I'm not sure how that would work in a way that wasn't awful. Like...let's say the Coca Cola company was given the right to regulate soft drinks in Chicago; the first thing they're going to do is ban Pepsi....
The only way Coca-Cola could be given exclusive regulatory rights is by government action, so your scenario isn't an example of private regulation at all (if anybody could do it, Pepsi would also be doing it in this scenario). Furthermore, Coke and Pepsi are already regulated by the American Beverage Association, a private regulator.
A private regulator tests goods and services for approval. Companies don't have to go through with it (ie, the don't want to pay for it or simply can't afford it), but those that do will be able to sell it to a wider customer base, as primary consumers (for Coke and Pepsi, this would be mostly supermarkets and restaurants) will buy approved products before unapproved products.
Another great example of this can be found on any electronic product. Check your computer or monitor; if it's a laptop, you can also check the power adapter. Somewhere on the unit should be a block of logos and various bits of text; that's proof that the product has been tested for safety. Primary consumers (Target, Wal Mart, Best Buy, etc) will not buy computers without such testing.
While some of those logos are from government regulators (the FCC comes to mind), most of them are private regulators. The most notable in this category would be Underwriters Laboratories (circle with a UL in it). They've been testing products for well over a century, with a reputation for next to zero corruption, and they're nonprofit. All without government having to spend a single taxpayer dime.
Hope that answers your question, MC.
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