Dynamics of reciprocal regulation
Reciprocity pervades regulation more than meets the eye. This thesis observes that regulators’ forbearance gives regulatees a chance to reciprocate with reform or compliance.
Compliance with law or regulation is a reciprocal response to legitimate regulation. Compliance can also be a response to the observed compliance of fellow citizens’. This is one aspect of indirect reciprocity, a concept that is developed theoretically as a key to successful regulation in this thesis.