Can Enhanced Self-Regulation Deliver Trust? Assessment via Two Experimental Surveys (Libby Maman, Professor Yuval Feldman and Professor David Levi-Faur)
24.02.2021, 16:00 CET
In the ‘golden age of regulation” in general and the rise of the regulatory state in particular, it is useful to explore alternatives to state, direct and hierarchical regulation. Enhanced forms of self-regulation may overcome the weaknesses of traditional regulation and may offer advantages in the form of greater public trust. This paper asks whether and under which conditions will the public feel it can trust market actors in different forms of enhanced self-regulation. It uses two web-based experimental surveys (Study 1: N=597; Study 2: N =598) to examine public trust in a hypothetical Fintech company under different regulatory designs. In the first study, we explore the extent of which different types of state regulation regimes encourage public trust in the regulated entity. In the second study, we explore the degree in which six different forms of self-regulation can equal state regulation in providing trust. Our findings show that self-regulatory regimes, in varying forms, gain lesser levels of public trust comparing to state-regulation regimes. We also found evidence that self-regulatory regimes could lead to more trust of the public in the regulated entity if the public trusts the regulator. Finally, we found that public trust of regulatees depends more upon the likelihood of sanctions imposed on violations.
Libby Maman is a doctoral student at the Federmann School of Public Policy and Government at the Hebrew University of Jerusalem and a research fellow in the Institut Barcelona d'Estudis Internacionals (IBEI) – and is working as part of the Horizon 2020 funded project titled: Trust in Governance and Regulation in Europe (TiGRE). Yuval Feldman is the Mori Lazarof professor of legal research at Bar-Ilan University Faculty of Law (PhD UC Berkeley 2004). His research focus on Behavioural & Empirical Analysis of Regulation, Enforcement and Compliance. He is a Senior Fellow at the Israel Democracy Institute and Co Founder of ComplianceNet, a global network of Compliance researchers. David Levi-Faur is professor of regulation and public policy at the Department of Political Science and the Federmann School of Public Policy at the Hebrew University of Jerusalem. He is a founding editor of Regulation & Governance, a top journal that serves as the leading platform for the study of regulation and governance in the social sciences.