Book DescriptionDespite the increasing trend towards deregulation, the public regulation of private activities remains a common phenomenon in industrialized countries. However, it is frequently claimed that slow and costly regulatory licensing proceduresimpede economic growth. This book investigates the strategic and adaptive interaction between citizen-applicants and administrators in regulatory licensing bodies, and studies the effects of policies to accelerate and simplify these processes. Basedon a variation and extension of the enforcement game, the author demonstrates that amendments to procedural rules which aim to speed-up and improve licensing procedures may have the effect of reducing social welfare. He illustrates that the failure of a policy to increase the number of applications implies a failure to increase the number of licenses granted. This in turn causes a reduction of social welfare. Importantly, he shows that the reverse implications are not true and that...

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