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Effective Market Power: the domestic institutional roots of international market regulation

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Abstract:

International market regulation has become a critical determinant of corporate and national economic fortunes. Understanding how jurisdictions exert influence over international market rules thus becomes crucial for scholars, business leaders, and policymakers alike. In this paper, we critically examine the widely accepted claim that domestic market size is the principal determinant of market power and international regulatory influence. We contrast this argument with a perspective stressing the crucial role of domestic political and regulatory institutions. Existing work pays too much attention on material aspects of domestic markets – size, scope, and market share – and underestimates the role of regulatory institutions in which domestic markets are embedded. These institutions are the missing link between latent market power vested in market size, and effective market power rooted in domestic regulatory capacity. We evaluate hypotheses from the market size and effective market power perspectives in two vital areas of international market regulation – securities and personal information. Initial evidence underscores the crucial role of domestic institutions and regulatory capacity for international market regulation.

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market (255), regulatori (220), intern (208), regul (159), u.s (123), european (95), domest (94), power (89), institut (85), capac (77), secur (68), size (65), rule (62), polit (56), data (55), effect (52), influenc (51), state (51), europ (49), see (45), standard (44),

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market power, international regulation, securities, data privacy
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Bach, David. and Newman, Abraham. "Effective Market Power: the domestic institutional roots of international market regulation" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p59408_index.html>

APA Citation:

Bach, D. and Newman, A. , 2004-09-02 "Effective Market Power: the domestic institutional roots of international market regulation" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p59408_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: International market regulation has become a critical determinant of corporate and national economic fortunes. Understanding how jurisdictions exert influence over international market rules thus becomes crucial for scholars, business leaders, and policymakers alike. In this paper, we critically examine the widely accepted claim that domestic market size is the principal determinant of market power and international regulatory influence. We contrast this argument with a perspective stressing the crucial role of domestic political and regulatory institutions. Existing work pays too much attention on material aspects of domestic markets – size, scope, and market share – and underestimates the role of regulatory institutions in which domestic markets are embedded. These institutions are the missing link between latent market power vested in market size, and effective market power rooted in domestic regulatory capacity. We evaluate hypotheses from the market size and effective market power perspectives in two vital areas of international market regulation – securities and personal information. Initial evidence underscores the crucial role of domestic institutions and regulatory capacity for international market regulation.

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Associated Document Available Political Research Online

Document Type: .pdf
Page count: 49
Word count: 14762
Text sample:
Effective Market Power: The Domestic Institutional Roots of International Market Regulation by David Bach and Abraham Newman Instituto de Empresa Business School University of California Berkeley Madrid Spain Berkeley CA Abstract International market regulation has become a critical determinant of corporate and national economic fortunes. Understanding how jurisdictions exert influence over international market rules thus becomes crucial for scholars business leaders and policymakers alike. In this paper we critically examine the widely accepted claim that domestic market size is
Policy in Britain and the United States. Ithaca: Cornell University Press. Vogel David. 1995. Trading Up: Consumer and Environmental Regulation in a Global Economy. Cambridge: Harvard University Press. Weir Margaret and Theda Skocpol. 1985. State Structures and the Possibilities for "Keynesian" Responses to the Great Depression in Sweden Britain and the United States. In Brining the State Back In edited by Peter B. Evans Dietrich Rueschemeyer and Theda Skocpol. Cambridge: Cambridge University Press 107-63. Young Alasdair R. 2003. Political


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