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About: Meta-regulation     Goto   Sponge   NotDistinct   Permalink

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Meta-regulation is a form of regulation that encourages self-regulation of firms. In contrast to traditional forms of regulation, where decisions concerning rules are decided by the regulator, meta-regulation has firms create their own rules while observing and monitoring those rules. The advantages of self-regulation are that devolved structures of regulation allow for greater learning in complex and uncertain environments. Firms with the potential for catastrophic failure such as finance, oil drilling, mining, manufacturing, etc. often desire effective regulation to prevent such failures because of cost and damaged public relations.