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Network Structure and Cooperation in Regulatory Enforcement

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Abstract:

Networks that coordinate local policy decisions can enhance the value of policy outcomes for the multiple users and agencies by overcoming adverse effects of policy fragmentation in federalist systems. Our previous study provides empirical evidence that
effective local water policy networks increase both enforcement and compliance rates in the
permit system authorized by the Clean Water Act. Our proposed APSA presentation intended
to extend this study to consider the compliance of government permit holders, but data limitations and the problem of getting more accurate measures of networks precluded that study.

In particular, we found that the theoretical foundations for analyzing the effectiveness of networks was too weak to allow us to readily develop the appropriate measures for networks.
Consequently, this study probes the theoretical basis for the policy gains attributed to networks, focusing in particular on the potential gains from cooperation in the regulatory
enforcement game and the role of network structure in supporting cooperation. We present
simulation results that compare the impact of regular, random, and “small-world” networks of
varying density on levels of cooperation in the regulatory enforcement game.
Our full project explores the evolution of cooperation in the complex situation
involving multiple regulatory agencies and multiple firms. We present here the first half of the exploration involving a single agency playing a “tit-for-tat” strategy against multiple firms.
Since no strategy can do better than cooperate in this relatively simple case, we investigate the impact of alternative network structures on the level of cooperation achieved and the speed with
which high levels of cooperation are achieved.

The first third of the paper reviews the general perspective for analyzing the impact of local networks on federal regulatory enforcement. The second third reviews some promising
concepts in network theory and discusses how we use agent-based simulations of the iterated prisoner’s dilemma-- specifically the iterated cooperative enforcement game—to explore the impact of network characteristics on the evolution of cooperative solutions. The final third
presents the results of the simulations.

Most Common Document Word Stems:

network (181), firm (114), cooper (106), polici (77), local (74), contact (71), agenc (62), inform (53), c (42), strategi (42), previous (41), random (40), author (39), d (39), enforc (38), 1 (36), water (30), outcom (30), structur (29), develop (28), round (28),

Author's Keywords:

Regulation, enforcement, agent-based model, network
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Association:
Name: American Political Science Association
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http://www.apsanet.org


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MLA Citation:

Scholz, John. "Network Structure and Cooperation in Regulatory Enforcement" Paper presented at the annual meeting of the American Political Science Association, Philadelphia Marriott Hotel, Philadelphia, PA, Aug 27, 2003 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p61987_index.html>

APA Citation:

Scholz, J. , 2003-08-27 "Network Structure and Cooperation in Regulatory Enforcement" Paper presented at the annual meeting of the American Political Science Association, Philadelphia Marriott Hotel, Philadelphia, PA Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p61987_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Networks that coordinate local policy decisions can enhance the value of policy outcomes for the multiple users and agencies by overcoming adverse effects of policy fragmentation in federalist systems. Our previous study provides empirical evidence that
effective local water policy networks increase both enforcement and compliance rates in the
permit system authorized by the Clean Water Act. Our proposed APSA presentation intended
to extend this study to consider the compliance of government permit holders, but data limitations and the problem of getting more accurate measures of networks precluded that study.

In particular, we found that the theoretical foundations for analyzing the effectiveness of networks was too weak to allow us to readily develop the appropriate measures for networks.
Consequently, this study probes the theoretical basis for the policy gains attributed to networks, focusing in particular on the potential gains from cooperation in the regulatory
enforcement game and the role of network structure in supporting cooperation. We present
simulation results that compare the impact of regular, random, and “small-world” networks of
varying density on levels of cooperation in the regulatory enforcement game.
Our full project explores the evolution of cooperation in the complex situation
involving multiple regulatory agencies and multiple firms. We present here the first half of the exploration involving a single agency playing a “tit-for-tat” strategy against multiple firms.
Since no strategy can do better than cooperate in this relatively simple case, we investigate the impact of alternative network structures on the level of cooperation achieved and the speed with
which high levels of cooperation are achieved.

The first third of the paper reviews the general perspective for analyzing the impact of local networks on federal regulatory enforcement. The second third reviews some promising
concepts in network theory and discusses how we use agent-based simulations of the iterated prisoner’s dilemma-- specifically the iterated cooperative enforcement game—to explore the impact of network characteristics on the evolution of cooperative solutions. The final third
presents the results of the simulations.

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Associated Document Available Political Research Online

Document Type: .pdf
Page count: 31
Word count: 9667
Text sample:
Network Structure and Cooperation in Regulatory Enforcement by John T. Scholz and Cheng-Lung Wang Department of Political Science Florida State University August 2003 Abstract Networks that coordinate local policy decisions can enhance the value of policy outcomes for the multiple users and agencies by overcoming adverse effects of policy fragmentation in federalist systems. Our previous study provides empirical evidence that effective local water policy networks increase both enforcement and compliance rates in the permit system authorized by the Clean
and Fragmented Authority: The Role of Local Policy Networks in Federal Regulatory Enforcement.” Working paper Florida State University. Watts Duncan J. 1999. The Small-Worlds: the Dynamics of Networks between Order and Randomness. Princeton: Princeton University Press. Wheeler Douglas P. 1996. Ecosystem Management: An Organizing Principle for Land Use. In Land Use in America ed. Henry L. Diamond and Patrick F. Noonan. Washington D.C: Island Press. Yaffee Steven L. Ali F. Phillips Irene C. Frentz Paul W. Hardy Sussanne M.


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