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Positive Regulation in a Changing World

All regulators deal with issues that are constantly changing. Economic circumstances and technologies develop, and market structures alter as new products are launched, providers come and go, consumer preferences shift and so on. Positive regulators will be aware of such changes (anticipating them when feasible), will have information on the nature of such changes, and will respond dynamically to any such shifts. This chapter focuses on three central strategic issues in doing so: how best to respond to those new activities, technologies, and operators that do not sit easily within current regulatory frameworks; how to encourage healthy innovations by businesses; and how regulatory regimes can be adjusted in ways that impose least costs on firms, consumers, and others. Special attention is paid to the challenges that arise when regulation operates in a fragmented manner and across different levels of government.